Static Market Has This Stock Picker Grinning.From a casual look at the stock market averages this year, you'd never know what Saul Pannell is so cheerful about. More than two-thirds of the way through 2000 the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. is down 2 percent, and the other big market indexes are up less than 5 percent. What fun is that for a guy like Pannell, who manages the $2.7 billion Hartford Capital Appreciation Fund and some other big pots of money for the $60 billion Hartford Investment Management Co.? "This is the perfect kind of market for me," Pannell tells a visitor to his officer at Wellington Management Co. overlooking o·ver·look tr.v. o·ver·looked, o·ver·look·ing, o·ver·looks 1. a. To look over or at from a higher place. b. Boston harbor. Wellington is a $250 billion firm that chooses investments as a sub-adviser for several different fund sponsors, among them the Vanguard Vanguard Any of three unmanned U.S. experimental satellites. Vanguard I (1958), the second U.S. satellite placed in orbit around Earth (after Explorer 1), was a tiny 3.25-lb (1.47-kg) sphere with two radio transmitters. Group and SunAmerica Inc., as well as Hartford. "This is a stock-picker's s market, In the past few years, we had a momentum, trend-following market where the only thing that did well was large-cap Large-cap A stock with a high level of capitalization, usually at least $5 billion market value. large-cap 1. Of or relating to the common stock of a big corporation that has considerable retained earnings and a large amount of growth stocks. In 1998, at the worst of it, I was up with what I thought were great ideas, bat we had a wretched year." Now the 49-year-old Pannell, who has spent 26 years at Wellington as an analyst and money manager, says there's cause to hope the change in conditions will last a while. When you compare out-of-favor "value" stocks to the long-fashionable large growth companies, he says, "there is still a huge gap there. When money flows into those value stocks Value stocks Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries. , it'll be like pouring gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by on a bon-fire. I feel kind of ehh about the market as a whole, but very good about the stock-picking." |
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