I’m always on the lookout for compelling stock opportunities, and one way to discover them is by examining the holdings of renowned portfolio managers. Recently, Morningstar shed light on U-Wen Kok and her management of the Victory RS Global Fund (MUTF:RSGGX). Kok, hailing from Toronto like myself, manages this all-world fund with investments in developed and emerging markets.
The fund, RSGGX, emphasizes companies exhibiting robust earnings quality, operational efficiencies, strong management, favorable growth attributes, and appealing valuations. Garnering a five-star rating among 330 global large-stock blend funds, RSGGX boasts 98 holdings with a weighted average market cap of $622 billion. The top three sectors by weight are technology at 23.4%, financials at 16.36%, and consumer discretionary at 11.05%.
Apple (AAPL)
Leading the tech sector is Apple (NASDAQ:AAPL), with a significant 4.6% weight in the fund, second only to Microsoft (NASDAQ:MSFT) at 4.8%. Apple’s focus on revenue generation from artificial intelligence sets it apart as a compelling investment.
The upcoming iPhone upgrade cycle, integrated with AI through Apple Intelligence, is projected to spark a surge in the stock price by 25%. This technological advancement, coupled with the anticipation surrounding the iPhone 16 launch and AI incorporation into iOS 18, has the potential to invigorate Apple’s shares.
JPMorgan Chase & Co. (JPM)
Representing the financial sector with a 1.7% weight in the fund, JPMorgan Chase & Co. (NYSE:JPM) has positioned itself as one of the top 10 holdings. The company’s robust financial performance is underscored by its second-quarter revenue growth of 22% and a 25% surge in net income.
JPMorgan’s stock has witnessed a remarkable 21% uptick in 2024 and a striking 43% surge over the past year. The recent announcement of a dividend increase and a new common share repurchase program reflects the company’s confidence in its financial strength, fortifying its position for any economic scenario.
Ulta Beauty (ULTA)
Capturing the consumer discretionary sector with a 1% weight in the portfolio is Ulta Beauty (NASDAQ:ULTA). While the company has faced challenges post the departure of its former CEO, its recent financial results present a mixed bag of performance metrics.
Despite reporting better-than-expected earnings and revenue in Q1 of 2024, Ulta Beauty revised its full-year guidance downwards. The company’s efforts to regain market share underscore its commitment to driving growth and restoration.
For risk-tolerant investors, seizing the opportunity to invest during a downturn could prove advantageous.
