Best Stock Fund Managers
Best Stock Fund Managers
Morningstar, a leading investment research firm, recently published an eye-opening report titled, "15 Funds That Have Lost the Most Value for Shareholders Over the Past Decade."
The analysis covered both exchange-traded funds (ETFs) and mutual funds, examining which products have done the most damage to long-term investor wealth.
Unsurprisingly, the worst offenders were mostly leveraged or inverse funds, which are notoriously volatile and typically designed for short-term trading.
But even among vanilla long-only funds, several saw significant losses – many of them single-country index ETFs tracking equities in developing markets like China and Brazil, both of which have posted disappointing performance over the past 10 years.
Two notable outliers on the list, however, were the ARK Innovation ETF (ticker: ARKK) and the ARK Genomic Revolution ETF (ARKG).
Both ARKK and ARKG are actively managed funds run by Cathie Wood, known for her aggressive, concentrated bets on high-growth tech names like Tesla Inc. (TSLA), Palantir Technologies Inc. (PLTR) and Coinbase Global Inc. (COIN).
Wood rose to fame in 2020 as ARKK skyrocketed, fueled by stimulus checks, ultra-low interest rates and a massive tech rally. But after delivering a record 152.5% return in 2020, the fund fell hard in ensuing back-to-back years – losing 23.4% in 2021 and a staggering 67% in 2022.
From October 2014 to March 2025, ARKK posted a 10.9% annualized return, but with extreme rollercoaster volatility. A 37.8% annualized standard deviation and a peak-to-trough maximum drawdown of 81% during the 2022 bear market made it hard for investors to stay the course.
Fortunately, Wood isn't the only active manager trying to beat the market. Many of her peers offer better stock-picking prowess at fees lower than the 0.75% expense ratio ARKK charges.
"Ultimately, active strategies are probably best suited for investors willing to accept higher costs and manager-specific risks in exchange for the potential to achieve differentiated returns, particularly in inefficient markets or during periods of market dislocation," says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.
For investors still looking to bet on skill over passive indexing, here's a look at seven stock fund managers whose strategies have consistently outperformed their benchmarks or peer groups:
David Hoeft – Dodge & Cox International Stock Fund (DODFX)
Sonu Kalra – Fidelity Blue Chip Growth Fund (FBGRX)
William Danoff – Fidelity Contrafund (FCNTX)
Hamilton Reiner – JPMorgan Hedged Equity I (JHEQX)
Kevin Simpson – Amplify CWP Enhanced Dividend Income ETF (DIVO)
Thomas Cole – Distillate U.S. Fundamental Stability & Value ETF (DSTL)
Christopher Ibach – Principal U.S. Mega-Cap ETF (USMC)
The analysis covered both exchange-traded funds (ETFs) and mutual funds, examining which products have done the most damage to long-term investor wealth.
Unsurprisingly, the worst offenders were mostly leveraged or inverse funds, which are notoriously volatile and typically designed for short-term trading.
But even among vanilla long-only funds, several saw significant losses – many of them single-country index ETFs tracking equities in developing markets like China and Brazil, both of which have posted disappointing performance over the past 10 years.
Two notable outliers on the list, however, were the ARK Innovation ETF (ticker: ARKK) and the ARK Genomic Revolution ETF (ARKG).
Both ARKK and ARKG are actively managed funds run by Cathie Wood, known for her aggressive, concentrated bets on high-growth tech names like Tesla Inc. (TSLA), Palantir Technologies Inc. (PLTR) and Coinbase Global Inc. (COIN).
Wood rose to fame in 2020 as ARKK skyrocketed, fueled by stimulus checks, ultra-low interest rates and a massive tech rally. But after delivering a record 152.5% return in 2020, the fund fell hard in ensuing back-to-back years – losing 23.4% in 2021 and a staggering 67% in 2022.
From October 2014 to March 2025, ARKK posted a 10.9% annualized return, but with extreme rollercoaster volatility. A 37.8% annualized standard deviation and a peak-to-trough maximum drawdown of 81% during the 2022 bear market made it hard for investors to stay the course.
Fortunately, Wood isn't the only active manager trying to beat the market. Many of her peers offer better stock-picking prowess at fees lower than the 0.75% expense ratio ARKK charges.
"Ultimately, active strategies are probably best suited for investors willing to accept higher costs and manager-specific risks in exchange for the potential to achieve differentiated returns, particularly in inefficient markets or during periods of market dislocation," says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.
For investors still looking to bet on skill over passive indexing, here's a look at seven stock fund managers whose strategies have consistently outperformed their benchmarks or peer groups:
David Hoeft – Dodge & Cox International Stock Fund (DODFX)
Sonu Kalra – Fidelity Blue Chip Growth Fund (FBGRX)
William Danoff – Fidelity Contrafund (FCNTX)
Hamilton Reiner – JPMorgan Hedged Equity I (JHEQX)
Kevin Simpson – Amplify CWP Enhanced Dividend Income ETF (DIVO)
Thomas Cole – Distillate U.S. Fundamental Stability & Value ETF (DSTL)
Christopher Ibach – Principal U.S. Mega-Cap ETF (USMC)
Re: Best Stock Fund Managers
David Hoeft – Dodge & Cox International Stock Fund (DODFX)
Some of the best-performing active funds don't rely on a single portfolio manager. Instead, they take a committee-based approach that draws on the collective experience, insights and discipline of multiple decision-makers.
DODFX exemplifies this collaborative structure. All committee members are shareholders of both Dodge & Cox and the funds they manage, ensuring skin in the game.
"For high-quality active investing, we often look to the managers at Dodge & Cox," says Daniel Shomper, a certified financial planner and senior associate wealth manager at Fairway Wealth Management. "Their approach to fund management is repeatable, focused and transparent."
The committee is currently led by chief investment officer and board member David Hoeft and includes five others, who collectively boast an average tenure of 22 years.
"Using a committee structure to manage funds helps create stability," Shomper explains. "It eliminates the reliance on star portfolio managers and makes succession planning easier to implement, both of which give investors a steadier experience."
Together, the committee for DODFX oversees a portfolio of 81 international stocks. DODFX is not closet indexing – a term used when active funds hug their benchmark closely while charging active fees.
The fund carries an 86% active share, signaling a truly differentiated portfolio, yet it maintains low portfolio turnover of just 16%, a key factor in minimizing taxable capital gains distributions.
The fund employs a fundamentals-driven process, assessing company-specific factors like financial strength, competitive position and management quality, in addition to valuation.
Despite its 0.62% expense ratio, DODFX has outperformed both the MSCI ACWI ex USA Index and the MSCI EAFE Index over the trailing-20-year period.
Some of the best-performing active funds don't rely on a single portfolio manager. Instead, they take a committee-based approach that draws on the collective experience, insights and discipline of multiple decision-makers.
DODFX exemplifies this collaborative structure. All committee members are shareholders of both Dodge & Cox and the funds they manage, ensuring skin in the game.
"For high-quality active investing, we often look to the managers at Dodge & Cox," says Daniel Shomper, a certified financial planner and senior associate wealth manager at Fairway Wealth Management. "Their approach to fund management is repeatable, focused and transparent."
The committee is currently led by chief investment officer and board member David Hoeft and includes five others, who collectively boast an average tenure of 22 years.
"Using a committee structure to manage funds helps create stability," Shomper explains. "It eliminates the reliance on star portfolio managers and makes succession planning easier to implement, both of which give investors a steadier experience."
Together, the committee for DODFX oversees a portfolio of 81 international stocks. DODFX is not closet indexing – a term used when active funds hug their benchmark closely while charging active fees.
The fund carries an 86% active share, signaling a truly differentiated portfolio, yet it maintains low portfolio turnover of just 16%, a key factor in minimizing taxable capital gains distributions.
The fund employs a fundamentals-driven process, assessing company-specific factors like financial strength, competitive position and management quality, in addition to valuation.
Despite its 0.62% expense ratio, DODFX has outperformed both the MSCI ACWI ex USA Index and the MSCI EAFE Index over the trailing-20-year period.
Re: Best Stock Fund Managers
Sonu Kalra – Fidelity Blue Chip Growth Fund (FBGRX)
FBGRX is a staple in many 401(k) plans, and today it is even more accessible, with a reduced expense ratio of 0.47% and no minimum investment requirement.
The fund focuses on a portfolio of roughly 400 large-cap growth stocks, which Fidelity defines as "well-known, well-established and well-capitalized" companies – with a clear tilt toward growth potential.
FBGRX has been managed by Sonu Kalra since 2009. Kalra's investment approach targets companies with above-average earnings growth potential and sustainable business models, but that are priced incorrectly by the market, particularly in how the market evaluates the rate and durability of their growth.
He also puts strong emphasis on catalysts – such as product cycles, leadership changes or turnaround stories – that can distort pricing temporarily, offering an edge for active investors. Over the long term, he prefers businesses with competitive advantages, pricing power and proven management teams.
Today, the fund's portfolio reflects Kalra's conviction in mega-cap tech, with all of the "Magnificent Seven" stocks among its top holdings. The fund currently has a 43% allocation to technology, underscoring its growth tilt.
In terms of performance, FBGRX has been a standout, consistently outperforming both the Russell 1000 Growth Index and the Morningstar large-growth peer category average over the trailing one-, three-, five- and 10-year periods.
FBGRX is a staple in many 401(k) plans, and today it is even more accessible, with a reduced expense ratio of 0.47% and no minimum investment requirement.
The fund focuses on a portfolio of roughly 400 large-cap growth stocks, which Fidelity defines as "well-known, well-established and well-capitalized" companies – with a clear tilt toward growth potential.
FBGRX has been managed by Sonu Kalra since 2009. Kalra's investment approach targets companies with above-average earnings growth potential and sustainable business models, but that are priced incorrectly by the market, particularly in how the market evaluates the rate and durability of their growth.
He also puts strong emphasis on catalysts – such as product cycles, leadership changes or turnaround stories – that can distort pricing temporarily, offering an edge for active investors. Over the long term, he prefers businesses with competitive advantages, pricing power and proven management teams.
Today, the fund's portfolio reflects Kalra's conviction in mega-cap tech, with all of the "Magnificent Seven" stocks among its top holdings. The fund currently has a 43% allocation to technology, underscoring its growth tilt.
In terms of performance, FBGRX has been a standout, consistently outperforming both the Russell 1000 Growth Index and the Morningstar large-growth peer category average over the trailing one-, three-, five- and 10-year periods.
Re: Best Stock Fund Managers
William Danoff – Fidelity Contrafund (FCNTX)
One of the longest-serving active managers in the business, William Danoff has been at the helm of FCNTX since 1990. Over his multi-decade tenure, Danoff has transformed the fund from its original contrarian roots into a large-cap growth strategy – with tremendous long-term results.
Danoff is known for his opportunistic approach to large-cap investing, grounded in the belief that "stock prices follow companies' earnings." He focuses on identifying businesses that can deliver durable, multiyear earnings growth.
Danoff also screens for what he calls "best of breed" qualities – namely, strong competitive positioning, high return on equity and invested capital, robust free cash flow, and proven, shareholder-friendly management teams.
FCNTX currently holds a diversified portfolio of around 370 stocks. While some of the Magnificent Seven remain among its top holdings, Danoff also breaks from large-cap growth conventions.
A notable example is a 9.2% allocation to Berkshire Hathaway Inc. (BRK.A) – now the fund's second-largest position. That move has paid off: While the broader U.S. market is down in 2025, Berkshire is up 16.5% year to date.
Even with a relatively high 0.63% expense ratio, Danoff has delivered. FCNTX has outperformed the S&P 500 index across the one-, three-, five- and 10-year trailing periods, reinforcing his status as one of active management's most consistent winners.
One of the longest-serving active managers in the business, William Danoff has been at the helm of FCNTX since 1990. Over his multi-decade tenure, Danoff has transformed the fund from its original contrarian roots into a large-cap growth strategy – with tremendous long-term results.
Danoff is known for his opportunistic approach to large-cap investing, grounded in the belief that "stock prices follow companies' earnings." He focuses on identifying businesses that can deliver durable, multiyear earnings growth.
Danoff also screens for what he calls "best of breed" qualities – namely, strong competitive positioning, high return on equity and invested capital, robust free cash flow, and proven, shareholder-friendly management teams.
FCNTX currently holds a diversified portfolio of around 370 stocks. While some of the Magnificent Seven remain among its top holdings, Danoff also breaks from large-cap growth conventions.
A notable example is a 9.2% allocation to Berkshire Hathaway Inc. (BRK.A) – now the fund's second-largest position. That move has paid off: While the broader U.S. market is down in 2025, Berkshire is up 16.5% year to date.
Even with a relatively high 0.63% expense ratio, Danoff has delivered. FCNTX has outperformed the S&P 500 index across the one-, three-, five- and 10-year trailing periods, reinforcing his status as one of active management's most consistent winners.
Re: Best Stock Fund Managers
Hamilton Reiner – JPMorgan Hedged Equity I (JHEQX)
"Beyond the potential for outperformance, active funds may offer critical risk management benefits," Schulman explains. "This ability to navigate changing market environments, rather than being locked into an index, can help mitigate downside risk – an important consideration for investors concerned about capital preservation."
Not all active fund managers aim to beat the market. Some, like Hamilton Reiner of JPMorgan Asset Management, focus instead on reducing downside risk – helping investors stay the course through volatility without sacrificing too much upside.
Reiner brings 38 years of industry experience, including 16 at JPMorgan and over a decade managing the $21 billion JHEQX. This fund blends a portfolio of large-cap U.S. equities with a protective options overlay – a strategy known as a put-spread collar.
JHEQX starts by buying a 5% out-of-the-money (OTM) put option to protect against moderate declines. To help finance this hedge, it then sells a 20% OTM put and a covered call that's 3.5% to 5.5% OTM. All of this is implemented on a laddered schedule, ensuring continuous coverage.
This structure caps both the upside and downside but has historically delivered strong results. Morningstar gives JHEQX a five-star rating, citing "reliable execution of a thoughtful strategy" and superior risk-adjusted returns among the "hedged equity" peer category.
From May 2014 to March 2025, the fund delivered a Sharpe ratio of 0.71, outperforming both the S&P 500 (0.68) and a traditional 60/40 portfolio (0.61) on a risk-adjusted basis with markedly lower annual volatility and maximum drawdowns.
The catch? JHEQX requires a $1 million minimum investment. For most investors, a more accessible option is the JPMorgan Hedged Equity Laddered Overlay ETF (HELO). Managed by Reiner as well, HELO offers a similar strategy, but with a lower 0.5% expense ratio and a share price around $60.
"Beyond the potential for outperformance, active funds may offer critical risk management benefits," Schulman explains. "This ability to navigate changing market environments, rather than being locked into an index, can help mitigate downside risk – an important consideration for investors concerned about capital preservation."
Not all active fund managers aim to beat the market. Some, like Hamilton Reiner of JPMorgan Asset Management, focus instead on reducing downside risk – helping investors stay the course through volatility without sacrificing too much upside.
Reiner brings 38 years of industry experience, including 16 at JPMorgan and over a decade managing the $21 billion JHEQX. This fund blends a portfolio of large-cap U.S. equities with a protective options overlay – a strategy known as a put-spread collar.
JHEQX starts by buying a 5% out-of-the-money (OTM) put option to protect against moderate declines. To help finance this hedge, it then sells a 20% OTM put and a covered call that's 3.5% to 5.5% OTM. All of this is implemented on a laddered schedule, ensuring continuous coverage.
This structure caps both the upside and downside but has historically delivered strong results. Morningstar gives JHEQX a five-star rating, citing "reliable execution of a thoughtful strategy" and superior risk-adjusted returns among the "hedged equity" peer category.
From May 2014 to March 2025, the fund delivered a Sharpe ratio of 0.71, outperforming both the S&P 500 (0.68) and a traditional 60/40 portfolio (0.61) on a risk-adjusted basis with markedly lower annual volatility and maximum drawdowns.
The catch? JHEQX requires a $1 million minimum investment. For most investors, a more accessible option is the JPMorgan Hedged Equity Laddered Overlay ETF (HELO). Managed by Reiner as well, HELO offers a similar strategy, but with a lower 0.5% expense ratio and a share price around $60.
Re: Best Stock Fund Managers
Kevin Simpson – Amplify CWP Enhanced Dividend Income ETF (DIVO)
One of the unique features of the ETF structure is its ability to facilitate collaborations between ETF issuers and independent wealth management firms, with the latter often serving as sub-advisors.
In this role, the sub-advisor is responsible for the day-to-day portfolio management, including stock selection and trading decisions, while the issuer handles the fund's operations and distribution.
A standout example of this model in action is DIVO, offered by Amplify ETFs and sub-advised by Capital Wealth Planning. The ETF is managed by Kevin Simpson, Capital Wealth Planning's founder and chief investment officer.
Simpson's approach begins with selecting a concentrated portfolio of blue-chip stocks – with a focus on quality companies that exhibit strong dividend and earnings growth. Additional filters include market capitalization, management track record, earnings consistency, free cash flow and return on equity.
What truly sets DIVO apart from most other covered call ETFs is its opportunistic approach to options writing, which improves total return potential instead of just chasing high yields.
Rather than applying a blanket strategy across the entire portfolio, DIVO writes covered calls on individual positions, tactically targeting events like earnings announcements or shifts in option pricing to maximize premium income while retaining upside potential.
DIVO currently holds a five-star Morningstar rating in the "derivative income" category, reflecting its ability to outperform the vast majority of peers on a risk-adjusted basis.
One of the unique features of the ETF structure is its ability to facilitate collaborations between ETF issuers and independent wealth management firms, with the latter often serving as sub-advisors.
In this role, the sub-advisor is responsible for the day-to-day portfolio management, including stock selection and trading decisions, while the issuer handles the fund's operations and distribution.
A standout example of this model in action is DIVO, offered by Amplify ETFs and sub-advised by Capital Wealth Planning. The ETF is managed by Kevin Simpson, Capital Wealth Planning's founder and chief investment officer.
Simpson's approach begins with selecting a concentrated portfolio of blue-chip stocks – with a focus on quality companies that exhibit strong dividend and earnings growth. Additional filters include market capitalization, management track record, earnings consistency, free cash flow and return on equity.
What truly sets DIVO apart from most other covered call ETFs is its opportunistic approach to options writing, which improves total return potential instead of just chasing high yields.
Rather than applying a blanket strategy across the entire portfolio, DIVO writes covered calls on individual positions, tactically targeting events like earnings announcements or shifts in option pricing to maximize premium income while retaining upside potential.
DIVO currently holds a five-star Morningstar rating in the "derivative income" category, reflecting its ability to outperform the vast majority of peers on a risk-adjusted basis.
Re: Best Stock Fund Managers
Thomas Cole – Distillate U.S. Fundamental Stability & Value ETF (DSTL)
Distillate Capital is a boutique, independent asset manager founded in 2017. The firm is employee-owned, with partners investing their own capital alongside clients, and it currently manages just over $2 billion across three strategies.
Leading Distillate Capital is Thomas Cole, CEO and co-founder, whose flagship ETF, DSTL, has earned a reputation for systematic, fundamentals-driven active management.
DSTL begins with a universe of 500 profitable U.S. large-cap stocks, closely resembling the S&P 500 in composition. From there, Cole and his team screen for low-debt companies with stable cash flows, narrowing the list.
Then, DSTL applies Distillate Capital's proprietary free cash flow yield methodology to select the final portfolio. The result is a basket of 100 stocks, weighted by free cash flow and rebalanced quarterly.
Since inception, DSTL has delivered a 14.8% annualized return after factoring in a 0.39% expense ratio, slightly trailing the S&P 500's 14.9%, but with a very different portfolio composition.
In a year where market-cap-weighted indexes are over-concentrated in a few mega-cap names, DSTL's valuation and quality-focused approach may again pull ahead.
Distillate Capital is a boutique, independent asset manager founded in 2017. The firm is employee-owned, with partners investing their own capital alongside clients, and it currently manages just over $2 billion across three strategies.
Leading Distillate Capital is Thomas Cole, CEO and co-founder, whose flagship ETF, DSTL, has earned a reputation for systematic, fundamentals-driven active management.
DSTL begins with a universe of 500 profitable U.S. large-cap stocks, closely resembling the S&P 500 in composition. From there, Cole and his team screen for low-debt companies with stable cash flows, narrowing the list.
Then, DSTL applies Distillate Capital's proprietary free cash flow yield methodology to select the final portfolio. The result is a basket of 100 stocks, weighted by free cash flow and rebalanced quarterly.
Since inception, DSTL has delivered a 14.8% annualized return after factoring in a 0.39% expense ratio, slightly trailing the S&P 500's 14.9%, but with a very different portfolio composition.
In a year where market-cap-weighted indexes are over-concentrated in a few mega-cap names, DSTL's valuation and quality-focused approach may again pull ahead.
Re: Best Stock Fund Managers
Christopher Ibach – Principal U.S. Mega-Cap ETF (USMC)
Christopher Ibach, along with Kyle Johnson and Aaron Siebel, manages USMC, one of the most unique actively managed equity ETFs on the market today.
The fund takes a narrow and focused approach, holding just 26 stocks and sporting a 51.8% active share, signaling meaningful deviation from the benchmark.
Ibach and the team begin by screening the top 50% of the S&P 500 by market capitalization, then apply a two-tiered strategy: The largest names by market cap are weighted accordingly, while the remaining companies are ranked based on Principal's proprietary financial strength score.
The result is a mega-cap portfolio that has consistently outperformed the S&P 500 over the trailing one-, three- and five-year periods. It achieves this with an ultra-low 0.12% expense ratio, making it one of the most cost-effective actively managed ETFs.
Christopher Ibach, along with Kyle Johnson and Aaron Siebel, manages USMC, one of the most unique actively managed equity ETFs on the market today.
The fund takes a narrow and focused approach, holding just 26 stocks and sporting a 51.8% active share, signaling meaningful deviation from the benchmark.
Ibach and the team begin by screening the top 50% of the S&P 500 by market capitalization, then apply a two-tiered strategy: The largest names by market cap are weighted accordingly, while the remaining companies are ranked based on Principal's proprietary financial strength score.
The result is a mega-cap portfolio that has consistently outperformed the S&P 500 over the trailing one-, three- and five-year periods. It achieves this with an ultra-low 0.12% expense ratio, making it one of the most cost-effective actively managed ETFs.