Where Morningstar's Top-Rated Female Fund Manager is Putting Money to Work

In the ever-evolving landscape of investment, where the winds of change can shift with the slightest economic tremor, one name stands out as a beacon of strategic foresight and financial acumen: Susan Bao. As a top-rated female fund manager at Morningstar, Bao's investment strategies have not only weathered the storms of market volatility but have also navigated the treacherous waters of sector-specific challenges with remarkable precision. Her approach, rooted in fundamental research and a disciplined bottom-up process, has earned her a place among the elite in the investment world.



Bao's investment philosophy is a testament to the power of active management. Unlike passive strategies that merely track market indices, Bao's approach involves a meticulous analysis of individual companies, their financial health, and their potential for growth. This hands-on approach has allowed her to identify opportunities in sectors that others might overlook, such as US equities and emerging markets debt.

One of Bao's standout strategies is her focus on US equities. Despite the challenges posed by the concentration of large-cap stocks like Nvidia, Microsoft, Amazon, Alphabet, and Meta, Bao has managed to carve out a niche for herself. Her fund, JPMorgan US Large Cap Core Plus JLPYX, employs "classic fundamental bottom-up research" and implements long and shorts through pair trades, giving it an informational advantage in the market. This strategy has not only helped the fund outperform its benchmarks but has also earned it a Silver Medalist Rating from Morningstar.

Bao's expertise extends beyond US equities. Her fund, Fidelity Advisor New Markets Income FGBMX, focuses on emerging markets debt, a sector that has seen its fair share of turbulence. However, under Bao's leadership, the fund has navigated these choppy waters with ease, thanks to her structured process and experienced analyst team. This strategy has earned the fund a Bronze Medalist Rating, a testament to Bao's ability to identify and capitalize on opportunities in even the most challenging sectors.

Bao's investment strategies are not just about identifying opportunities; they are also about managing risk. Her approach to risk management is characterized by diversification and predictability. For instance, her core bond strategy, JPMorgan Core Bond JCBUX, emphasizes diversification and predictability, which help the fund outperform when bond prices rally and hold up when they falter. This strategy has earned the fund a Gold Medalist Rating, a testament to Bao's ability to manage risk effectively.



Bao's investment strategies are not just about identifying opportunities; they are also about managing risk. Her approach to risk management is characterized by diversification and predictability. For instance, her core bond strategy, JPMorgan Core Bond JCBUX, emphasizes diversification and predictability, which help the fund outperform when bond prices rally and hold up when they falter. This strategy has earned the fund a Gold Medalist Rating, a testament to Bao's ability to manage risk effectively.

In conclusion, Susan Bao's investment strategies are a testament to the power of active management, fundamental research, and disciplined risk management. Her ability to identify opportunities in challenging sectors and manage risk effectively has earned her a place among the elite in the investment world. As the market continues to evolve, Bao's strategies will undoubtedly continue to set the standard for investment excellence.