As a fund manager, if you want to outperform both the market and your peers, you have to identify some sleepers.
Sure, you can buy the usual suspects that have seen torrid share expansion in recent years — companies like Amazon, Alphabet, and Facebook— but to truly stand out, you have to generate and act upon unique ideas.
It’s an approach that’s worked for Dennis Lynch, the head of growth investing at Morgan Stanley Investment Management, where he’s the lead manager of six funds and directly oversees $27 billion. He’s been the top-performing large-cap fund manager on Wall Street in recent years, a feat that would be impossible if he was choosing the same stocks as everyone else.
With that in mind, it’s important to note that Lynch’s express purpose isn’t to beat his peers — or even the market — over a specific period.