Cummins Inc., VMware Inc. and Chipotle Mexican Grill Inc. show that stock pickers can still outperform the market even as shares move in the same direction as benchmark indexes at near record rates, according to Birinyi Associates Inc.
Valuations in the Standard & Poor’s 500 Index increased by the most since the financial crisis last year as 460 stocks rose, more than any year since at least 1990. Neither are reasons to bet against equities now.
ClearBridge Investments’ Richard Freeman followed drug company Alza Corp. for 28 years before buying shares in 1999, when a failed acquisition by a larger company sent shares plunging. Two years later, Johnson & Johnson bought Alza for triple the price the fund paid.
U.S. equities rebounded from the worst weekly slump since August and European stocks rose the most in two months amid manufacturing growth and as investors awaited the outcome of the Federal Reserve’s meeting. Brent oil jumped as Libyan rebels refused to hand over control of ports.