Energy and small-cap portfolios continued to be the top-performing equity separate accounts for the year ended Dec. 31, according to Morningstar Inc.'s Separate Accounts Monitor database.
For the third consecutive quarter, Wellington Management Co., Boston, and The Mitchell Group Inc., Houston, were one-two among managed domestic equity portfolios. Wellington's energy strategy returned 55.3% for the year ended Dec. 31, and Mitchell's publicly traded energy portfolio gained 46.6%.
Two small-cap growth strategies managed by Insight Capital Research & Management Inc., Walnut Creek, Calif., followed. Insight's small-cap growth strategy returned 35.7% for the year, while its institutional small-cap growth portfolio returned 32.6%.
However, even the small-cap strategies relied greatly on energy holdings, said Lance Swanson, Insight Capital portfolio manager. "We were heavy in the energy group, which helped a great bit. The easiest way to talk about performance is to talk about certain stocks. TODCO did very well for us. We purchased it in February '05," he said. TODCO is a Houston-based provider of contract oil and drilling services.
Hansen Natural Corp. was another high-performing stock, Lee Molendyke, another portfolio manager at Insight, said. Insight purchased the stock in May 2004, and it was up 400% by the end of last year, he said. Hansen is a Corona, Calif., based beverage company. One of its products, Hansen Monster Energy Drink, continues to gain market share, and Insight is confident the stock's performance will remain be strong, said Mr. Molendyke.