Stock selection based on Morningstar’s ten-year, five-star general equity mutual funds

Authors

  • Anthony L. Loviscek Department of Finance and Legal Studies, Seton Hall University, South Orange, NJ 07079, USA
  • W. John Jordan Department of Economics, Seton Hall University, South Orange, NJ 07079, USA

DOI:

https://doi.org/10.1016/S1057-0810(00)00062-7

Keywords:

five-star funds, Ten-year, Portfolios

Abstract

Recent research suggests that the individual investor can build stock portfolios that outperform broad market indices. Based on this research and on evidence supporting the persistence of mutual fund performance, we test whether or not the individual investor can build market-superior portfolios from stocks selected from the top holdings of Morningstar’s ten-year, five-star general equity mutual funds. We use modern portfolio theory to construct the portfolios. Although the portfolios tend to outperform the S&P 500 for the 1990s, we conclude that the evidence is not strong enough to recommend this stock selection strategy to the individual investor. © 2000 Elsevier Science Inc. All rights reserved.

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Published

2000-06-30

How to Cite

Loviscek, A. L., & Jordan, W. J. (2000). Stock selection based on Morningstar’s ten-year, five-star general equity mutual funds. Financial Services Review, 9(2), 145–157. https://doi.org/10.1016/S1057-0810(00)00062-7

Issue

Vol. 9 No. 2 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 JAI Press Inc.

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