How the top stock fund managers of 2024 outwit their peers — and their big bets for 2025
Dec 29, 2024 - businessinsider.com
In 2024, the stock market experienced a surprising surge of over 20%, driven largely by growth-focused mutual fund managers who capitalized on investments in technology firms, particularly those involved in artificial intelligence. The top-performing funds, such as the Fidelity Trend Fund and Hartford Growth Opportunities Fund, saw significant gains by investing in mega-cap technology companies like Nvidia, Alphabet, and Tesla. These funds benefited from a favorable economic environment characterized by solid growth, robust corporate profits, and declining inflation and interest rates. Fund managers remain optimistic for 2025, despite concerns over valuations and potential tariff impacts under President-elect Trump.
The article highlights the strategies of various successful fund managers, such as Shilpa Mehra, Stephen Mortimer, and Ankur Crawford, who focused on quality growth stocks, transformational changes within companies, and diversified sector allocations. Many funds, including the Morgan Stanley Insight Fund and Kinetics Paradigm Fund, leveraged the AI and crypto trends to achieve impressive returns. Looking ahead, fund managers anticipate continued opportunities in AI, utilities, and other growth sectors, while also preparing for broader competition and challenges in stock selection as the market evolves.
Key takeaways:
The stock market surged by more than 20% in 2024, surprising most strategists.
Growth-focused mutual fund managers excelled, driven by investments in technology firms.
Artificial intelligence remained a significant investment theme, with mega-cap technology companies like Nvidia and Alphabet leading the way.
Wall Street is generally optimistic about 2025, despite concerns over valuations and potential tariff impacts.
