The Top Stock Funds of 2024: A Year of Outperformance

In 2024, the stock market witnessed a remarkable recovery, with the S&P 500 Index surging by 26.7% and the IA North American sector returning 22.1%. This strong performance was driven by several key factors, including the resilience of US equity and tech funds, the outperformance of financial services stocks, and the emergence of emerging markets as a significant contributor to fund success. This article will explore the top-performing stock funds of 2024, highlighting their investment strategies, market trends, and sector performance that contributed to their success.

1. Alger American Asset Growth: This fund, managed by Alger, was one of the top-performing stock funds of 2024, with a return of 52.2%. The fund's high conviction approach and exposure to the Magnificent Seven stocks, such as Microsoft and Nvidia, contributed to its strong performance. Alger American Asset Growth's high-risk strategy, with an average volatility of 20.9%, generated 9.7% alpha in 2024, outperforming the IA North American sector average and the S&P 500's return.
2. Morgan Stanley INVF US Growth: This fund, managed by Morgan Stanley, also performed exceptionally well in 2024, with a return of 43.6%. Unlike many of its peers, Morgan Stanley INVF US Growth held only one of the Magnificent Seven stocks (Tesla) in its top 10, with businesses such as Cloudflare and Roblox featuring prominently. The fund's higher-risk approach, with 25.7% volatility, contributed to its outperformance, ranking it sixth in absolute terms and fourth in the IA North America peer group.
3. SVS Aubrey Global Conviction: This fund, managed by SVS, had a significant non-US component, with Indian-based multinationals such as Zomato and Bharti Airtel in its top 10 holdings. The fund's exposure to India's strong growth last year, combined with its significant US exposure (79% of the portfolio), contributed to its remarkable performance. SVS Aubrey Global Conviction more than doubled the return of its benchmark, rising 45% compared to 20.8% for the MSCI World Index, making it the second-best performing strategy in the IA Global sector and the fifth-best fund in any sector.
4. JPM Emerging Europe Equity: This fund, managed by JPMorgan, soared by 53.9% in 2024. The fund's exposure to emerging markets, particularly in Europe, contributed to its strong performance. Although specific details about the fund's holdings are not provided, its success highlights the importance of international exposure in a diversified portfolio.



The top-performing stock funds of 2024 demonstrate the importance of market trends, sector performance, and fund management strategies in determining a fund's success. US equity and tech funds, financial services stocks, and emerging markets all played significant roles in the funds' outperformance. Additionally, funds' portfolio composition, risk management, and investment strategies, such as high conviction approaches and exposure to specific sectors or regions, contributed to their strong performance.

In conclusion, the top-performing stock funds of 2024 highlight the importance of understanding market trends, sector performance, and fund management strategies in building a successful investment portfolio. By analyzing the strategies and performance of these funds, investors can gain valuable insights into the factors that contribute to a fund's success and make more informed investment decisions.