The Columbia Large Cap Growth Fund (GAEGX), valued at US$5.8 billion, is one of the best creative investment portfolios. With its selection of stocks, it has been recognized as one of the best mutual funds.
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Tiffany Wade, the joint portfolio manager, said of the characteristics of growth and value orientation, stock size and yield: “We try to remain factor-neutral.” “And we try to maintain industry neutrality. Our goal It’s a balanced approach, not a big macro bet.”
Managers hope that taking a fair approach—relying on individual stock selection rather than macro bets—will lead to long-term success. Wade said: “We believe that our balanced approach allows us to perform well throughout the market cycle, regardless of the benefits of any part of the cycle.”
Of course, fishing in the right pond can also help. As of July 31, the fund held 56 stocks.Among its top 10 picks alone, there are four super popular FAANG stocks, including Facebook (FB), Apple (Apple), Amazon (AMZN) and Google parent company letter (Google).
Best Mutual Fund: What makes stocks the best idea
The fund does not directly bet on macro trends. Nevertheless, the fund did not ignore the macro trends. Instead, it considers these when weighing the prospects of individual stocks.
In April, the fund began to increase its holdings Competition group (MTCH), it runs the online dating site of the same name and owns several other sites. “They were affected by the pandemic,” Wade said. “And we think they will benefit from people using new opportunities to meet other people,” stems from the increasing use of the Covid-19 vaccine.
Wade added that she and co-manager Melda Mergen don’t want the company’s only driving force to be economic recovery. “We hope that the company can take advantage of basic benefits in the long-term,” she said.
In March, Mergen and Wade cut the names of biotech companies such as disease diagnosis companies Precision science (EXAS) and pharmaceutical manufacturers Horizon therapy (HZNP). Managers believe that high-value stocks with many profit potentials in the future may be hurt by inflation and rising interest rates.
Mergen has been the manager of the fund since the end of 2019. Wade joined her in March, replacing Tchintcia Barros and Peter Santoro. “Philosophically, we think our portfolio is a collection of our best ideas,” Wade said. “There is a lot of continuity of ideas with the previous team. We focus on high-quality companies.”
Alphabet’s earnings per share growth accelerates
The alphabet is one of them. How does Alphabet help Large Cap Growth continue to be among the best mutual funds? One way it does this is to continue to shine despite its market value approaching $2 trillion. In the past four quarters, earnings per share have increased by 24%, 29%, 99%, and 189%, respectively.
Google’s search engine and advertising are key drivers.
In the field of cloud computing, Alphabet’s market share is less than Microsoft (MSFT) and Amazon (Amazon). This provides space for its development in this field.
The video sharing site YouTube is still developing. “YouTube is in the early stages of advertising growth,” Wade said. “It may become an important contributor. It is growing faster than Alphabet’s core advertising business.” Wade said that as the scale of advertising expands, revenue should grow.
Wade saw the potential of Alphabet’s artificial intelligence business and its autonomous driving business Waymo.
Nvidia’s fast computing chip
Nvidia (NVDA) The stock price is now 6% higher than the 207.43 breakout point on August 20. In the past four quarters, earnings per share have increased by 62%, 64%, 104%, and 89%, respectively.
Nvidia produces fast computing chips needed for applications ranging from autonomous vehicles to data centers and artificial intelligence (AI). “Part of Nvidia’s story is the growing demand for semiconductors in different markets,” Wade said. “As a leading chip manufacturer, NVIDIA is most likely to benefit from this price difference.”
This benefit will also help large capital growth companies in their struggle to maintain their position in the best mutual funds.
How ServiceNow helped make it one of the best mutual funds
Serve immediately (NOW) is a dominant software as a service (SaaS) player. The manufacturer of workflow management software started with the IT department supporting its customers. They have expanded to support other departments, such as human resources and facility management.
“They have become an integral part of companies that use different software platforms,” Wade said. “Platforms usually cannot talk to each other. As platforms become more and more complex, this situation becomes more common. ServiceNow enables these platforms to talk to each other.”
Wade said that as workflow management becomes more automated, the need for integrated platforms is accelerating. She said that ServiceNow will definitely benefit from this trend.
In turn, this should boost the prospects for large capital growth companies to maintain high positions in the best mutual funds.
Like Microsoft and Nvidia, ServiceNow is also the newest member of the IBD rankings and IBD 50.
The leaderboard is a selection of IBD’s leading stocks that stand out because of their technical and fundamental outlook. IBD 50 is the flagship screen of IBD’s leading growth stocks, showing strong relative price strength and first-class fundamentals.
Looking at the numbers: one of the best mutual funds
Large Cap Growth topped the S&P 500 Index in 2020 and the three, five and ten years ended December 31, becoming the winner of the IBD Best Mutual Fund Award.
This year, entering Wednesday, the fund exceeded the S&P 500 index by 23.59% and 19.52%. Large growth competitors tracked by Morningstar Direct rose 17.10% on average. Class C stocks (LEGCX) require a minimum initial investment of US$2,000.
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