Fund manager: This is how I choose stocks and which ones I recommend
Fund manager Alex Umansky clearly beats the S&P 500 with his funds. The expert has also achieved impressive returns with a more cautious fund such as the Baron Durable Advantage Fund. Find out with BI+ which criteria he uses to select stocks and which 8 positions particularly excite him.
- The Baron Durable Advantage Fund (BDAIX) focuses on more stable, more mature companies and has gained 136 percent in the last five years.
- According to Alex Umansky, fund manager at Baron Capital, artificial intelligence and strong balance sheets are important criteria for stock selection.
- Top holdings in the fund include Microsoft, Meta, Amazon, Broadcom, Taiwan Semiconductor, Arch Capital, Blackstone and Apollo Global Management.
Baron Capital stands for growth. The founder, Ron Baron, is known for having successfully bet on stocks such as Tesla and Spotify. By 2023, the company will have achieved an increase of at least 1000 percent with 31 stocks in its more than 40-year history.
But surprisingly, in addition to many growth strategies, the renowned investment house also offers a more cautious product: the Baron Durable Advantage Fund (BDAIX. This is an ETF that is managed by Alex Umansky, one of the company's top managers.
An all-weather fund from a stock market expert
Unlike the usual stocks with high growth potential, this fund focuses on more stable, more mature companies. “This is the closest thing we have to an all-weather fund,” Umansky told Business Insider.
The fund is “probably one of our most defensive strategies”. But: Despite the safer and less volatile approach, the Durable Advantage Fund has increased by 136 percent over the past five years.
The fund has outperformed the S&P 500, which has risen 93 percent over the same period. Since the beginning of the year, the fund has also been ahead of the S&P 500 with a return of 24.7 percent. But how does Alex Umansky select the stocks for the ETF? In an interview with Business Insider, he not only reveals his criteria, but also names them
Alex Umansky has clear criteria according to which stocks are included in the fund.