Mutual Fund Report: Five Five-Star Managers
Five-star mutual fund managers are not nearly as rare as five-star generals or five-star restaurants, but they're still a rare breed. "Squawk On The Street" rounded up five of them, all of whom were making their network debut.
Dan Chace -- Wasatch Micro Cap (WMICX)
Of all the funds tracked by Morning Star, the Wasatch Micro Cap Fund is the top performer over the last ten years, sporting a 24.8% annualized return.
Chace and his team look for high quality companies, great management and reasonable multiples. "It's pretty basic," says Chace. But he admits to having a harder time finding the right companies in the U.S. these days. "Singapore has been a very successful place for us."
Among the companies you'll hear about: SM&A, a business consultant, and Big 5 Sporting Goods, who stores in the western U.S.
Christopher Alderson -- T. Rowe Price Emerging Europe & Mediterranean (TREMX)
One of the top performers tracked by Morningstar for the past five years, the T. Rowe Price portfolio manager
The fund is up 5.46% so far this year. Over three years, it is up 39.93%. Over five years, its annualized return is 35.95%.
The fund has a "very broad brief", says Alderson, but currently owns a lot of companies in Russia, Egypt and Israel.
The fund is heavily weighted in financials (45%) and energy (17%) as of March 31, 2007. Lukoil is among the top ten holdings and the company presently has 52% invested in Russia.
Theodore Bigman -- Morgan Stanley Inst. International Real Estate (MSUAX)
One of the top performers tracked by Morningstar for the past five years, Bigman also runs the Five Star-rated Morgan Stanley Inst. US Real Estate A (MSUSX).
Year to date, the fund is up 4.14%, vs. 38.21% over three years and 32.41% over five.
Bigman says year-to-date, "Asia has been doing the best." The region has "some of the best office markets in the world" as vacancy rates are low.
Bigman also likes U.S. hotel stocks, particularly at the high end, such as Starwood and Hilton.
