The Top Tens

- "MSFT takes over the top spot. After reviewing the top holdings of the largest-50 actively managed US mutual funds by asset size, Microsoft took over as the most held stock at 18 of the top-50 funds in 2Q10, up from the number two spot in 1Q10. Wells Fargo moved to the number two spot, the position it held in 4Q09. Meanwhile, JP Morgan fell out of the top-3 to the fourth most held stock while Merck replaced it in the third position. The poor performance for all sectors in 2Q10 is the likely reason why 25 of the top-30 most held stocks were flat to down from their number of holdings in 1Q10."
- "Financials and Tech names continue to represent 60% of the 15 most held positions in the top-tens lists of the top-50 mutual funds. Despite negative performance for every sector and industry group in the second quarter and Financials performing second to worst while Tech performed fifth to worst of the sectors, these groups continue to represent a significant proportion of holdings for the top-50 mutual funds. Financials and Tech names represent 40% of the top-30 positions held in the top-tens lists for the top-50 mutual funds. These trends have been in place each quarter since 4Q09, which we find interesting considering the disparity of performance of each sector over the past three quarters."
- "Merck and Wells Fargo continue to seem the most over-owned. We calculate the ratio of the top-ten listings to market value as a basic technique to scan whether a large-cap name is over- or under-represented among mutual fund portfolios. From this perspective, Merck and Wells Fargo continue to rank as over-owned, while Goldman Sachs has also spiked in the screen as over-represented. Meanwhile, Apple, General Electric and Coca-Cola seem most under-represented."
- "Google and Apple remain the most owned among growth funds while JP Morgan, Merck and AT&T are the most heavily owned by value funds. Additionally, Microsoft declined in holdings for growth funds in the quarter. Meanwhile, among value funds the holdings of Wells Fargo fell from the most well represented name to the fourth most liked."
- "Domestic mutual fund flows continue to suffer significant outflows through the first seven-months of 2010. Domestic equity mutual funds suffered a cumulative outflow of $236.45 billion from 2007 through 2009 and have continued to struggle through July 2010, having shed an additional $27.10 billion. Meanwhile, international equity funds garnered $28.68 billion through July 2010 after taking in $30.28 billion in 2009. Bond funds have attracted $184.32 billion thus far in 2010, greater than the $177.78 billion inflow of the comparable period of 2009, during which year bond funds took in a record $375.48 billion."


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