Energy- and real estate-related portfolios claimed several of the top positions in a ranking of top-performing equity managers for the year ended Dec. 31, while domestic small-cap and midcap strategies continued their strong performance.
Two of the top three positions in the managed accounts universe were energy portfolios, coming on the heels of 2004's lofty oil prices. Investment manager searches for real estate bargains within several portfolios paid off with returns ranging from roughly 40% to 44%.
Manager rankings available here
The small-cap energy strategy of State Street Research & Management Co., Boston, which is now part of BlackRock Inc., topped the list of managed domestic overall equity managers for 2004, with 54.6%. The State Street portfolio, now known as the BlackRock Global Resources Portfolio, continued to occupy the top spot, which it claimed three months earlier.
Overall, domestic equity managers provided a median return on investments of 14.5% for the year, outperforming the Standard & Poor's 500 index's 10.9% and the Russell 3000 index's 11.95%, according to the manager performance database owned by Morningstar Inc., Chicago.
Donald Smith & Co., New York, took the second, fourth, eighth and 10th spots with its midcap value, microcap value, equities composite and large-cap concentrated value equity strategies, respectively. Those portfolios returned 46.9%, 45.2%, 40.7% and 39.7%, respectively, for the year. Wellington Management Co., Boston, ranked third with its energy portfolio, up 45.8%, and seventh with its real estate securities strategy, up 42.1%.
The small-cap equity strategy of GW Capital Inc., Bellevue, Wash., up 44.5%, finished fifth for the year. Cohen & Steers Capital Management Inc., New York, ranked sixth with its Realty Focus portfolio, up 43.7%, and Morgan Stanley Investment Management, New York, finished ninth with its U.S. real estate portfolio, returning 39.8%.