Investors are pouring more money into stock mutual funds in the U.S. than they have in 13 years, attracted by a market near record highs and stung by bond losses that would deepen if interest rates keep rising.
Morgan Stanley’s Dennis Lynch looks for small companies he can buy and hold for years as they grow into bigger businesses -- a search that has led to investments from Pandora Media Inc. to Twitter Inc. Sometimes he is willing to pay prices that look expensive by traditional measures.
U.S. stocks will decline over the next seven years after almost tripling from their 2009 lows because they are overvalued, said Ben Inker, head of global asset allocation at investment firm Grantham Mayo Van Otterloo & Co.
Affiliated Managers Group Inc., the company that owns stakes in more than two dozen money managers, said third-quarter profit rose 20 percent as client deposits and a stock-market rally boosted assets.
Invesco Ltd.’s Robert Mikalachki invests in companies with an enduring edge on competitors, a strategy that has led him to everything from a mattress maker that he calls the “Mercedes-Benz of bedding,” to a car dealership whose small-town locations create local monopolies.
Wally Weitz, the mutual-fund manager who beat 90 percent of rivals in the past five years by buying stocks he deemed cheap, says bargains are so scarce these days that he’s letting his cash holdings swell.
Franklin Resources Inc., the manager of the Franklin and Templeton mutual funds that has the majority of its equity assets in global stocks, said fiscal fourth- quarter profit climbed 3.4 percent as rising markets boosted assets.