Thomas Ognar, manager of Wells Fargo Advantage Growth Fund (SGRNX), has outstanding growth stock picking skills. As of 8/11/2011, the fund delivered the following performance:
|5 Yrs||10 Yrs||15 Yrs|
|S&P 500 TR||0.58||1.80||5.75|
Ognar seeks long-term capital appreciation and invests principally in equity securities of companies that are believed to have prospects for robust and sustainable growth of revenues and earnings. Let's look at its top 10 tholdings:
|Ticker||Company Name||% Asset|
|WFM||Whole Foods Market, Inc.||2.32%|
|CTSH||Cognizant Technology Solutions Corporation A||2.30%|
|PXD||Pioneer Natural Resources Company||2.22%|
|STJ||St Jude Medical, Inc.||2.07%|
|ALXN||Alexion Pharmaceuticals, Inc.||2.05%|
These stocks have the following ratios:
|SGRNX||Large Cap Growth Average|
|3 Year Earnings Growth||20.22%||15.15%|
So we can see that these stocks are not cheap, compared with other large growth stocks. But they have excellent earnings growth (20% in the last 3 years), as exemplified by stocks like Apple (NASDAQ:AAPL), Priceline (NASDAQ:PCLN) (which has enjoyed solid earning growth in this frugal economic environment) and Whole Foods (NASDAQ:WFM) (still enjoyed by upper class consumers who are actually less affected by this balance sheet repairing downturn).
The performance of these stocks is outstanding, even compared with diversified ETF portfolios:
Portfolio Performance Comparison
|Portfolio/Fund Name||1Yr AR||1Yr Sharpe||3Yr AR||3Yr Sharpe||5Yr AR||5Yr Sharpe|
|Retirement Income ETFs Strategic Asset Allocation Risk Profile 0||7%||28%||3%||8%||3%||8%|
|Retirement Income ETFs Tactical Asset Allocation Risk Profile 0||12%||45%||14%||70%||14%||62%|
Three Year Chart
Given the fund's low annual turnover rate (about 30%), stock investors should be able to look at these stocks as potential candidates for high octane stock portfolio construction.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.