10 Stocks the Best Fund Managers Have Been Selling

Stock investors have been rewarded so far in 2024: The Morningstar US Market Index is up more than 14% as of June 21. According to Morningstar’s US Market Fair Value estimate, stocks look slightly overvalued today.

Investors who’d like to do some midyear profit-taking may be wondering which stocks they might scale back in. For some suggestions, we’re examining which stocks the “smart money” has been selling during the past few months.

Specifically, we’ve taken a look into the latest portfolios of some of the best mutual fund managers. To isolate the top stock investors among current active fund managers, we screened on the following:

• Actively managed funds that land in Morningstar’s US large-value, US large-blend, or US large-growth categories.
• Funds with at least one share class earning Morningstar Medalist Ratings of Gold with 100% analyst coverage.
• Funds that hold 100 stocks or fewer as of their most recently reported portfolios.

Eleven separate fund portfolios passed our screen. We then compared the latest portfolios of these funds with their portfolios three months prior to determine what stocks these managers have been selling.

10 Stocks That the Best Fund Managers Are Selling

Here are some of the stocks that top managers have been scaling back in during the past few months.

1. Meta Platforms META
2. Oracle ORCL
3. Uber Technologies UBER
4. Bank of America BAC
5. S&P Global SPGI
6. KKR & Co. KKR
7. Alphabet GOOG
8. Microsoft MSFT
9. Roblox Corp RBLX
10. Cloudflare NET

Don’t take this as a comprehensive list of stocks to sell. Why? Because several of these stocks remain sizable holdings among the best managers; trimming a heavily weighted stock position isn’t the same as bailing out of a name entirely. Also, while many of these stocks look overvalued according to Morningstar, some look fairly valued, or even undervalued, today. And of course, selling a stock can have tax implications, and tax circumstances differ from investor to investor.

Here’s a little bit about each of the most-sold stocks, along with some commentary from the Morningstar analyst who follows the company. All data is as of June 21, 2024.

Meta Platforms

• Number of best managers selling the stock: 4
• Morningstar Price/Fair Value: 1.24
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: High
• Morningstar Style Box: Large Growth
• Sector: Communication Services

The stock that the best fund managers have scaled back in most during the past quarter is Meta Platforms. That’s hardly surprising, given this wide-moat stock’s meteoric 450%-plus return since hitting its late-2022 low. After Meta reported first-quarter earnings, Morningstar Director Mike Hodel noted that the company’s investment surge to fund activities related to artificial intelligence overshadowed solid growth numbers. Meta stock looks 24% overvalued relative to Morningstar’s $400 fair value estimate.

Meta’s Facebook is the largest social network in the world, with over 3 billion monthly active users. The growth in users and user engagement, along with the valuable data that they generate, makes Meta’s platforms attractive to advertisers. The combination of these valuable assets and our expectation that advertisers will continue shift their spending online bodes well for the firm’s top-line growth and cash flow.

Meta has attracted users and increased engagement by providing additional features and apps within its ecosystem. With more user interaction among friends and family, the sharing of videos and pictures, and the continuing expansion of the social graph, we believe the firm will steadily compile more data, which Meta and its advertising clients then use to launch online advertising campaigns targeting specific users. While utilization of consumer data is under scrutiny, we think Meta’s large audience size will still attract ad dollars. Growth in Meta’s average ad revenue per user indicates advertisers' willingness to pay more for ads, as they expect high return on investment from these targeted efforts.

We believe Meta will continue to benefit from an increased allocation of marketing and advertising dollars toward online advertising, more specifically social network and video ads where Meta is especially well positioned. The firm’s Facebook app, along with Instagram, Messenger, and WhatsApp, is among the world’s most widely used apps on both Android and iPhone smartphones. Meta is taking steps to further monetize its various apps, such as providing interactive video ads and tapping into e-commerce. It is also applying artificial intelligence and virtual and augmented reality technologies to various products, which may increase user engagement even further, helping to further generate attractive revenue growth from advertisers in the future.

Oracle

• Number of best managers selling the stock: 3
• Morningstar Price/Fair Value: 1.44
• Morningstar Economic Moat Rating: Narrow
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Core
• Sector: Technology

The second most-sold name among the best fund managers last quarter, Oracle stock looks significantly overvalued; we think shares are worth $98, and they trade 44% above that. We raised our fair value estimate on the stock by almost 17% after earnings, after reevaluating the strength of Oracle’s growing infrastructure as a service business, explains Morningstar Analyst Julie Bhusal Sharma. We assign the company a narrow economic moat rating and think that switching costs in the firm’s core enterprise resource planning and database markets could be vulnerable as enterprises shift workloads to the cloud.

Oracle is a best-in-breed provider of on-premises relational database technologies and enterprise resource planning software and is one of the most profitable companies in the software industry. However, growth has been lacking as more customers shift their workloads to the cloud, bypassing Oracle’s solutions. Despite Oracle’s cloud migration efforts, cloud competition will likely provide headwinds for Oracle. In turn, our moat rating for Oracle is narrow, coupled with a negative moat trend rating.

Oracle’s business is centered around its relational database, which stores a treasure trove of data that is the lifeblood of many enterprises. Oracle’s software offerings leverage this database as its backend, while Oracle’s servicing and hardware businesses support these database tasks. Oracle remains a best-of-breed provider of on-premises databases and software, and customers face very high switching costs if they look to migrate elsewhere. However, we don’t view the company as being on the forefront of recent software trends, and new and potential customers appear to be looking past Oracle for their database needs. Database preferences are far wider today due to the sheer number of ways to manipulate data, and the different data storage practices this necessitates. In turn, Oracle is losing database market share to new database types that may be better suited to the cloud.

Additionally, the transition to the cloud is prompting enterprises to change software vendors away from all-in-one ERP systems to application specific that are best of breed. In response, Oracle is banking on its second-generation cloud to not only cater to its traditional enterprise workloads, like supporting databases, but also general use workloads. However, we view Oracle’s cloud as subscale to Amazon and others, and we doubt Oracle can close this gap soon. In our opinion, Oracle should still be successful in moving a healthy amount of its traditional on-premises workloads to Oracle cloud. However, migrating all of its customers is not such a sure thing, as cloud-first software vendors have been able to take meaningful share from legacy Oracle customers.

Uber Technologies

• Number of best managers selling the stock: 1
• Morningstar Price/Fair Value: 0.88
• Morningstar Economic Moat Rating: Narrow
• Morningstar Uncertainty Rating: Very High
• Morningstar Style Box: Large Growth
• Sector: Technology

Adjusted for the very high uncertainty surrounding company cash flows, Uber’s stock is about fairly valued today in Morningstar’s view. After Uber put up strong financial results in the first quarter, Morningstar Analyst Malik Ahmed Khan noted that it was “a firm on top of its game, executing strongly on its business model while posting year-over-year growth in bookings, audience, frequency, and profitability.” We also expect impressive 20%-40% average annual adjusted EBITDA growth the next three years. While Uber is by no means a must-sell stock according to our valuation, we’d prefer to see a wider margin of safety before picking up shares.

Uber has become the largest on-demand ride-sharing provider in the world (outside of China). It has matched riders with drivers completing trips over billions of miles and, at the end of 2023, had 150 million customers using its ride-sharing or food delivery services at least once a month. In light of Uber’s network effect between riders and drivers, as well as its accumulation of valuable user data, we believe the firm warrants a narrow moat rating.

Uber helps people get from Point A to Point B by taking ride requests and matching them with drivers available in the area. Uber generates gross booking revenue from this service (the firm’s mobility segment), which is equivalent to the total amount that riders pay. From that, Uber keeps what remains after the driver takes their share.

As the pandemic spurred growth in demand for delivery services, Uber’s business is now more diversified. The delivery segment remains resilient despite the receding pandemic, while the ride-sharing business continues to rebound and grow impressively.

We view Uber as a leader in a fast-growing ride-sharing market, which we expect will reach more than $600 billion in total (excluding China) by 2028. The firm faces stiff competition from players such as Lyft (mainly in the US). While Uber no longer operates in China, it does compete with Didi in other regions around the world. Globally, the market remains fragmented, and Uber competes with many local ride-sharing platforms and taxis. But we expect the firm to remain the leader in this market as its network effect grows.

Bank of America

• Number of best managers selling the stock: 3
• Morningstar Price/Fair Value: 1.04
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Value
• Sector: Financial Services

Bank of America is the first value stock on our list of stocks the best managers have been selling. Given the stock’s 56% rise since late October 2023, it’s an understandable candidate for profit-taking. That being said, Morningstar Analyst Suryansh Sharma points out that this wide-moat bank’s balance sheet is relatively well positioned for interest-rate cuts and suggests that investors be on the lookout to purchase shares on any weakness. Morningstar thinks Bank of America stock is about fairly valued today, trading near our $38 fair value estimate.

After years of issues following the financial crisis of 2008, Bank of America has emerged as one of the preeminent US banking franchises. The bank has one of the best retail branch networks and overall retail franchises in the United States, is a Tier 1 investment bank, is a top-four US credit card issuer, is a top-three US acquirer, has a solid commercial banking franchise, and owns the Merrill Lynch franchise, which has turned into one of the leading US brokerage and advisor firms.

We believe that scale and scope advantages are increasingly important as the role of technology in banking grows. Bank of America is seeing increasing mobile adoption, has access to data on millions of customers, and has one of the largest technology budgets in the industry. Given the scalability of these platforms, we believe these factors will only matter more as the industry progresses.

Bank of America has been investing in organic growth initiatives across its franchises. The bank has opened hundreds of new financial centers across the US over the last several years in an attempt to build its client base across its product offerings. The bank's expenses have crept up quite a bit in the last several years, but we expect expense growth to remain muted in 2024 before it creeps back to the longer-term target of around 2% annual growth. The bank's ability to keep the expense growth rate in check will be key to improving the bank's efficiency.

Meanwhile, the bank isn’t the only one investing for future share gains, so the space remains as competitive as ever, and we don’t see Bank of America quite catching up with rival JPMorgan. Even so, with its scaled and integrated retail and commercial offerings, Bank of America remains in an enviable competitive position. During the recent banking turmoil, deposit outflows were not a serious issue, and the bank remains solidly profitable, with returns on tangible equity consistently near or above 15%. While the bank took more duration risk than peers in its securities portfolio, regulatory capital levels and profitability remain solid.

S&P Global

• Number of best managers selling the stock: 2
• Morningstar Price/Fair Value: 1.02
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Sector: Financial Services

S&P Global’s stock is having an uninspiring 2024: The stock performance is flat for the year to date. The wide-moat firm—a giant in ratings and benchmarking—has experienced some of the same sales challenges as peers like FactSet and MSCI, reports Morningstar Analyst Rajiv Bhatia. According to Morningstar’s metrics, S&P Global isn’t necessarily a screaming stock to sell, though it is about fairly valued relative to our $430 fair value estimate.

Whether through credit ratings, financial indexes, or commodity price reporting, S&P Global has established a wide moat from its data-driven benchmarks. Given the embedded nature of these benchmarks, S&P enjoys a strong competitive position and strong operating margins. In February 2022, S&P completed its $44 billion acquisition of IHS Markit. We believe IHS Markit’s recurring revenue model will further diversify S&P’s revenue, limiting upside and downside scenarios for the firm.

Bond issuance volume is a key revenue driver for S&P's ratings business, which makes up about one third of the firm’s adjusted operating income. Over the long term, we believe mid-single-digit revenue growth, driven by GDP growth and pricing, is a reasonable expectation for this business. Regulatory issues are part of the backdrop of the firm’s ratings business, but regulations can often benefit established players.

S&P’s other segments include market intelligence (25% of pro forma adjusted operating income), S&P Dow Jones indexes (17%), commodity insights (16%), and mobility (10%). Market intelligence revenue is recurring but faces competition from other providers such as Bloomberg, Refinitiv, and FactSet. The indexes segment revolves around the S&P 500 index and is monetized from index subscriptions to active asset managers, license fees for passive exchange-traded funds and mutual funds, and royalties from exchange-traded options and futures. Commodity insights consists of S&P's legacy Platts business and IHS Markit's resources segment.

After spinning off its education business in 2013 and rebranding to S&P Global from McGraw Hill Financial, the firm has focused on expanding margins. Adjusted operating margin rose from 34% in 2013 to 55% in 2021, which we attribute to streamlining operations and revenue growth. S&P's margin declined in 2022 as IHS Markit's businesses are lower-margin and the ratings business faces issuance headwinds, but expense and revenue synergies should lead to expansion thereafter.

KKR & Co

• Number of best managers selling the stock: 4
• Morningstar Price/Fair Value: 1.17
• Morningstar Economic Moat Rating: Narrow
• Morningstar Uncertainty Rating: High
• Morningstar Style Box: Large Growth
• Sector: Financial Services

The third and final financial-services stock that the best fund managers have been selling, KKR stock is up about 100% since late October 2023. After that handsome runup, the stock looks about 17% overvalued according to Morningstar; given that premium, it certainly qualifies as a stock to sell at least some of. Morningstar Strategist Gregg Warren explains that KKR has carved out a narrow economic moat, thanks to its reputation as one of the go-to firms for institutional and high-net-worth investors looking for exposure to alternative assets. We think the stock is worth $93.

KKR has built a solid position in the alternative-asset management industry, using its reputation, broad product portfolio, investment performance track record, and a cadre of dedicated professionals to not only raise capital but to also maintain its reputation as one of the go-to firms for institutional and high-net-worth investors looking for exposure to alternative assets. Unlike the more traditional asset managers, which have had to rely on investor inaction (driven by either good fund performance or investor inertia/uncertainty) to keep annual redemption rates low, the products offered by alternative asset managers can have lockup periods attached to them, which prevent investors from redeeming part or all their investment for a prolonged period.

KKR is one of the world’s largest alternative asset managers, with $577.6 billion in total assets under management including $470.6 billion in fee-earning AUM, at the end of March 2024. The company has two core segments: asset management (which includes private markets—private equity, credit, infrastructure, energy, and real estate—and public markets—primarily credit and hedge/investment fund platforms) and insurance. On the asset-management side, private markets account for 49% of fee-earning AUM and 69% of base management fees, while public markets account for 51% and 31%, respectively. On the insurance side, following the company’s purchase of Global Atlantic Financial Group, KKR has exposure to retirement/annuity and life insurance lines as well as reinsurance and retroactive insurance.

Investors in KKR are betting that the company’s solid investment track record and fundraising capabilities will continue. While we have confidence in the firm’s ability to earn excess returns over the next 10 years, we believe it will become increasingly difficult for the company to do so longer term, as increased competition (including from more traditional asset managers like BlackRock), continued pressure on fees, and a general maturation of the segment (from a solid period of above-average growth due to shifting investor demand for alternatives) weigh on results.

Alphabet

• Number of best managers selling the stock: 3
• Morningstar Price/Fair Value: 1.01
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: High
• Morningstar Style Box: Large Growth
• Sector: Communication Services

Alphabet is among the most-sold stocks of the best fund managers in the latest quarter; despite the haircut, the stock still remains a top-10 holding for this group of managers overall. After Alphabet posted strong first-quarter results that positioned the company to exceed our expectations for the year, Morningstar ticked up its fair value estimate on it by $8, reports Morningstar’s Hodel. Alphabet stock looks about fairly valued, trading near our $179 fair value.

Alphabet dominates the online search market with 90%-plus global share (80%-plus US share) for Google, and the business generates very strong cash flow. We expect continuing search growth as we remain confident that Google will maintain its leadership despite Microsoft’s move to include generative artificial intelligence in Bing and Google’s recent AI missteps. We also foresee YouTube and cloud contributing more to the firm’s top and bottom lines.

Google’s ecosystem strengthens as its products are adopted by more users, making its online advertising services more attractive to advertisers and publishers. With its dominant share of queries globally, Google holds and continues to collect far more information regarding consumer behavior, in terms of both which results are most relevant for a given search term and the ads most likely to generate incremental sales. The firm uses technological innovation to improve the user experience in nearly all its Google offerings, while making the sale and purchase of ads efficient for publishers and advertisers. This innovation has included the use of AI in delivering search results. The introduction of generative AI adds some uncertainty, but we expect Google will ultimately use its information advantage to maintain its dominance. While the business is maturing, we think ad revenue can continue to grow at mid-single-digit rates in the coming years.

Among the firm’s investment areas, Google has quickly leveraged the technological expertise applied to its private cloud platform to expand into the public cloud business. The firm has increased its market share in this area, driving additional revenue growth and creating more operating leverage, which we expect will continue.

Most of Alphabet’s more futuristic projects are not yet generating revenue, but the upside is attractive if they succeed, as the firm is targeting newer markets. Alphabet’s autonomous car technology business, Waymo, is a good example: Based on various studies, it may tap into a market valued in the tens of billions of dollars within the next 10-15 years.

Microsoft

• Number of best managers selling the stock: 7
• Morningstar Price/Fair Value: 1.04
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Sector: Technology

Microsoft stock was sold by the greatest number of managers on our list last quarter—seven in total—yet the stock remains the top holding among the set of best managers in aggregate. The wide-moat tech giant delivered strong results in the latest quarter that topped our top- and bottom-line estimates; as a result, we notched up our fair value estimate by $15 after earnings, explains Morningstar Senior Analyst Dan Romanoff. Microsoft stock looks about fairly valued, trading near our $435 fair value estimate.

Microsoft is one of two public cloud providers that can deliver a wide variety of PaaS/IaaS solutions at scale. Based on its investment in OpenAI, the company has also emerged as a leader in artificial intelligence. The company has also enjoyed great success in upselling users on higher-priced Office 365 versions, notably to include advanced telephony features. These factors have combined to drive a more focused company that offers impressive revenue growth with high and expanding margins.

We believe that Azure is the centerpiece of the new Microsoft. Even though we estimate it is already an approximately $58 billion business, it grew at an impressive 30% rate in fiscal 2023. Azure has several distinct advantages, including that it offers customers a painless way to experiment and move select workloads to the cloud, creating seamless hybrid cloud environments. Since existing customers remain in the same Microsoft environment, applications and data are easily moved from on-premises to the cloud. Microsoft can also leverage its massive installed base of all Microsoft solutions as a touchpoint for an Azure move. Azure also is an excellent launching point for secular trends in AI, business intelligence, and Internet of Things, as it continues to launch new services centered around these broad themes.

Microsoft is also shifting its traditional on-premises products to become cloud-based SaaS solutions. Critical applications include LinkedIn, Office 365, Dynamics 365, and the Power platform, with these moves now beyond the halfway point and no longer a financial drag. Office 365 retains its virtual monopoly in office productivity software, which we do not expect to change in the foreseeable future. Lastly, the company is also pushing its gaming business increasingly toward recurring revenues and residing in the cloud. We believe that customers will continue to drive the transition from on-premises to cloud solutions, and revenue growth will remain robust, with margins continuing to improve for the next several years.

Roblox

• Number of best managers selling the stock: 1
• Morningstar Price/Fair Value: 0.72
• Morningstar Economic Moat Rating: Narrow
• Morningstar Uncertainty Rating: Very High
• Morningstar Style Box: Mid Growth
• Sector: Communication Services

Roblox stock is having an awful 2024, down about 20% for the year to date. Morningstar’s Hodel says that weakening engagement has weighed on growth; Morningstar cut its fair value estimate on the mid-growth stock by nearly 17% after earnings. But Roblox stock doesn’t look like a sell to us: It’s trading 28% below Morningstar’s $50 fair value estimate, and Hodel thinks the market is overly discounting the company’s long-term potential.

Roblox operates an online video game platform that lets gamers create, develop, and monetize games for other players. The firm offers developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. There is no entry cost to try out Roblox or the vast majority of user-developed games. Thus, to drive booking growth and keep the Roblox model churning along, the new user must purchase and spend Robux, the platform’s tender.

Roblox heavily benefited from the stay-at-home restrictions at the start of pandemic with very impressive top-line growth, even more so than its video game peers. It expanded its user base from 19.1 million daily active users in fourth-quarter 2019 to 65 million in the second quarter of 2023. We believe that the combination of popular games and large user base creates an effective network effect that will consistently attract more players and developers. Additionally, we expect that the firm will be able to increase penetration in non-US markets. As a result, we expect that DAUs will exceed 100 million by 2027.

The platform has also successfully increased bookings per DAU through both increased hours of engagement and higher spending per hour. However, success in the US and Canada has driven most of this growth as the firm's large and mature customer base ramped up usage during the pandemic. Domestic users now generate more than 4 times as much revenue as those in Europe and 6 times as much as those in Asia-Pacific. We expect this gap to shrink over the next decade as more players in other markets become heavy users and move into age cohorts with higher disposable income.

Longer-term, we assume Roblox continues to invest in adding new features to help keep both developers and teenage gamers engaged with the platform. While an all-encompassing metaverse may be very far from realization, we think that Roblox’s steps toward a metaverse will help the platform hold on to users and developers as they age.

Cloudflare

• Number of best managers selling the stock: 1
• Morningstar Price/Fair Value: 0.90
• Morningstar Economic Moat Rating: Narrow
• Morningstar Uncertainty Rating: Very High
• Morningstar Style Box: Mid Growth
• Sector: Technology

Cloudflare rounds out our list of stocks the best managers have been selling. This mid-growth stock looks about fairly valued to Morningstar, after adjusting for its very high uncertainty—so not necessarily a stock to sell from our perspective, but not a screaming stock to buy, either. Morningstar’s Khan thinks that the narrow-moat company is setting itself to become a player in the public cloud space and as a beneficiary to the edge computing megatrend. We think shares are worth $87.

We believe Cloudflare is poised for success in both the security and edge computing spaces. As a security-focused content delivery network, Cloudflare stands to benefit from increased cybersecurity spend. Currently, more than 10% of global internet traffic goes through Cloudflare’s network, with more than one fourth of all websites in the world using Cloudflare. We expect cybersecurity to be increasingly relevant for firms across the globe as cyberattacks continue to increase. However, we think Cloudflare is capable of much more than security, and we view edge computing as a major opportunity for the firm.

As a CDN, Cloudflare delivers internet traffic from the points of origination to delivery in a quick, efficient manner. At the same time, the firm can monitor copious amounts of internet activity, analyze impending threats, and move traffic around to ensure speed and security. The firm’s distributed network structure, as a security-focused CDN, has network effects built into it. The data generated by its users help Cloudflare track internet activity and improve its offerings related to web performance and security, leading to more data being channeled through Cloudflare’s network.

As we look at the future, we think edge computing is a paradigm shift in how enterprises manage their data-related workflows. Instead of workflows being processed in a large data center, they can be dealt with at edge nodes closer to end users, thereby cutting down on the average response time. While both the security and the edge computing space remain competitive, we think Cloudflare’s unique infrastructure, sticky product portfolio, and strategy of investing heavily in sales and research give the firm a competitive edge in both spaces.

We also view the firm’s strategy of targeting larger clients as a step in the right direction, as larger clients tend to be stickier and have larger annual contract values. Further, with a proven ability to move clients along the upselling schedule, as evidenced by the firm’s strong net revenue retention, we view Cloudflare as having strong long-term growth prospects.

Who Are the Best Fund Managers?

Eleven large-cap funds passed our screen and therefore qualify as our top managers.

• Diamond Hill Large Cap DHLYX
• Dodge & Cox Stock DODGX
• JPMorgan Equity Income OIEJX
• Loomis Sayles Growth LSGRX
• MFS Value MEIJX
• Morgan Stanley Growth MSEQX
• Oakmark OAKMX
• Parnassus Core Equity PRBLX
• Principal Blue Chip PGBHX
• T. Rowe Price All-Cap Opportunities PRWAX
• Vanguard Dividend Growth VDIGX

Five of the funds land in Morningstar’s US large-value category: Diamond Hill Large Cap, Dodge & Cox Stock, JPMorgan Equity Income, MFS Value, and Oakmark. Parnassus Core Equity and Vanguard Dividend Growth are categorized as US large-blend funds. And Loomis Sayles Growth, Morgan Stanley Growth, Principal Blue Chip, and T. Rowe Price All-Cap Opportunities hail from the US large-growth category.

How Do We Determine Which Stocks the Best Managers Are Selling?

To determine which stocks top managers are selling, we compared the latest portfolios of these funds with their portfolios three months prior. We then calculated a “sell score” for each stock, which is a weighted average that allows us to make apples to apples comparisons of the most-sold stocks. One or two managers making large sales of a stock could lead to the same sell score as many managers selling small amounts of a stock.

Morningstar editors Margaret Giles and Lauren Solberg developed the methodologies and tools required to create this content.