Morningstar Advisor - February/March 2013 - (Page 18)

Investments à la Carte Five Picks for the Present Stock: General Motors GM Fair Value Estimate $52 Morningstar Rating Uncertainty High QQQQQ Daily stock price Fair value estimate (Gaps indicate when fair value estimate was under review.) 40 20 01/12 04/12 07/12 Forward P/E 5.6 Market Cap $46.4 billion 10/12 We think GM’s car models are of the best quality and design in decades. The company is already a leader in truck models, so a competitive lineup in all segments, combined with a much smaller cost base, leads us to think that GM will be printing money as vehicle demand recovers. GM had its best December in five years, with total volume up year over year by 4.9% and incentives down 5.3%. Management also said that its pricing increased $500 per unit year over year. An increase in pricing combined with lower incentive spending suggests margin expansion. David Whiston, CFA Morningstar Analyst Rating 2012 Stock Price Compared With Fair Value Estimate $60K Economic Moat None Minimum Investment $1,000 10/1/12 Mutual Fund: FMI Large Cap FMIHX 1/2/12 Category 4 Large Blend 60 Morningstar Rating QQQQ Asset Allocation 40 Fair Value - Daily Daily Closing Price Cash US Stock 20 Expenses 0.96% Non US Stock Bond 0 10/10/1212/3/12 10/11/12 12/10/12 10/12/12 12/11/12 11/29/12 11/30/12 12/12/12 1/2/122/9/123/23/125/10/126/26/128/10/129/26/1211/15/12 1/3/122/15/12 4/2/125/16/12 7/2/128/9/129/21/1211/7/1212/27/12 1/4/122/16/12 4/3/125/17/12 7/3/128/15/1210/1/1211/20/12 1/5/122/17/12 4/4/125/18/12 7/4/128/16/1210/2/1211/21/12 1/10/122/24/124/11/125/29/127/13/128/29/1210/18/1212/7/12 1/6/122/20/12 4/5/125/21/12 7/5/128/17/1210/3/1211/22/12 1/11/122/27/124/13/125/30/127/16/128/30/1210/19/1212/13/12 1/9/122/21/124/10/125/28/127/12/128/28/1210/17/1212/6/12 1/12/122/28/124/16/125/31/127/17/128/31/1210/22/1212/14/12 1/13/122/29/124/17/12 6/1/12 7/18/12 9/3/12 10/23/1212/17/12 1/16/12 3/1/12 4/18/12 6/4/12 7/19/12 9/4/12 10/24/1212/18/12 1/17/12 3/2/12 4/19/12Other 7/10/128/24/1210/15/1212/4/12 1/18/12 3/5/12 4/20/126/5/12 7/20/12 9/5/12 10/25/1212/19/12 1/19/12 3/6/12 4/23/126/6/12 7/23/129/10/1210/30/1212/24/12 1/20/12 3/7/12 4/24/126/11/127/26/129/11/1210/31/1212/25/12 1/23/123/12/124/27/126/13/127/30/129/13/1211/1/1212/21/12 1/24/123/8/12 4/25/126/7/12 7/24/129/6/12 10/26/1212/20/12 1/25/123/13/124/30/126/14/127/31/129/14/1211/2/1212/26/12 1/26/123/9/12 4/26/126/12/127/27/129/12/12 11/5/12 12/28/12 1/27/123/14/12 5/1/126/8/12 7/25/129/7/12 10/29/12 12/31/12 1/30/123/15/12 5/2/126/15/12 8/1/12 9/17/12 11/6/12 1/31/123/16/12 5/3/126/18/12 8/2/12 9/18/12 11/12/12 2/1/12 3/19/12 5/4/126/19/12 8/3/12 9/19/12 11/8/12 2/2/12 3/20/12 5/7/126/20/12 8/6/12 9/20/1211/13/12 2/3/12 3/21/12 5/8/126/21/12 8/7/12 9/24/1211/9/12 2/6/12 3/22/125/11/126/27/128/13/129/27/1211/16/12 2/7/12 3/26/125/9/126/22/12 8/8/12 9/25/1211/14/12 2/10/123/28/125/15/126/29/12 8/20/1210/4/1211/23/12 2/8/12 3/27/125/14/126/28/128/14/129/28/1211/19/12 2/13/123/29/12 5/22/12 7/6/128/21/1210/5/1211/26/12 2/14/123/30/12 5/23/127/11/128/27/1210/16/1212/5/12 2/22/124/6/12 5/24/127/9/128/22/1210/8/1211/27/12 2/23/124/9/12 5/25/12 4/12/12 6/25/12 8/23/1210/9/1211/28/12 9/19/12 9/12/12 10/11/12 9/27/12 –100 –50 0 50 100 9/10/12 9/20/12 9/10/12 10/11/12 This large-blend fund has quietly put together a stellar record since lead manager Pat English took the helm in December 2001. English and his team run a concentrated portfolio of 25 to 30 stocks and manage risk by focusing on companies with durable business models, recurring revenues, and healthy returns Total Assets $6.4 billion 60 on invested capital. They’re also wary of short 40 product cycles. It’s a fine long-term holding and also has been a very consistent performer. 20 The fund tends to lag its peers when cyclical fare rules the roost but has outpaced 0 1/3/122/21/124/13/126/4/1 1/4/122/22/124/17/126/5/1 1/10/12 3/1/124/19/126/12 1/5/122/24/124/18/126/11 1/11/12 3/2/124/20/126/13 1/6/122/27/124/23/126/14 1/12/12 3/5/124/24/126/15 1/9/122/28/12 4/25/126/18 1/13/12 3/6/12 4/26/126/1 1/16/123/12/125/1/126/2 1/17/123/7/12 4/27/126/2 1/18/123/13/125/2/12 6/2 1/19/123/8/12 4/30/12 6/ 1/20/123/14/125/3/12 7 1/23/123/15/125/4/12 7 1/24/123/16/125/10/12 1/25/123/19/125/7/12 1/26/123/20/125/11/12 1/27/123/21/125/14/12 1/30/123/22/125/15/12 1/31/123/23/125/16/12 2/1/12 3/26/125/17/12 2/2/12 3/27/125/18/12 2/3/12 3/28/125/21/12 2/6/12 3/29/125/22/12 2/10/124/2/12 5/23/12 2/7/12 3/30/125/24/12 2/13/124/3/12 5/25/12 2/8/12 4/4/12 5/28/1 2/14/12 4/5/12 5/29/1 2/9/12 4/11/12 6/6/1 2/15/12 4/6/12 5/30/1 2/16/124/12/12 6/7/1 2/20/124/9/12 6/8/ 2/29/12 5/8/12 3/9/12 5/9/12 95% of its peers over the past five and 10 1/2/122/17/124/10/125/31/1 years.2/23/124/16/126/1/17 Greg Carlson 10/11/12 Separate Account: Janus Small Company Growth 9/27/12 Category 9 Small Growth Investment Style 9 Small Growth Morningstar Rating QQQQ Asset Allocation Cash US Stock Non US Stock Bond Other –100 –50 0 50 18 Morningstar Advisor February/March 2013 100 Minimum Investment $10 million This strategy’s managers, Brian Schaub and Chad Meade, have only been at the helm for two and a half years but have proven themselves elsewhere. The duo has expertly steered Janus Triton JATTX through turbulent markets since July 2006; that fund has beaten all but one of its small-growth peers on their watch. The Small Company Growth Number of Holdings 88 Total Assets $2.06 billion strategy focuses more purely on small caps (Triton invests in a mix of small caps and mid-caps), but Schaub and Meade have gotten off to a strong start there as well. Their emphasis on quality growers makes this a fine supporting player in a portfolio. Greg Carlson

Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2013

Morningstar Advisor - February/March 2013
Contents
Contributors
Letter From the Editor
Social Media, the Old- Fashioned Way
Do You Use Active Strategies?
Youth Appeal
How to Buy the Unloved 2013
Morningstar Managers of the Year
Investments á la Carte
Investment Briefs
Approaches to Absolute-Return Investing
In Agriculture, It’s Good to Be Strong
Yes, There Are Good Active Funds
The Decoupling
Where It Could Pay to Be Active
The Active Fund That Defies Obsolescence
The Epitome of an Active Manager
Lines of Communication
The Existence of Market Timing ‘Intelligence’
A Route to Commodities that Bypasses the Futures Market
Best Positioned for Health-Care Reform
Diversified Stock Funds That Earn Their Stars
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
A Twisted Debate

Morningstar Advisor - February/March 2013