Thornburg Core Growth makes big bets on a small number of stocks.
- The fund (symbol THCGX; 800-847-0200; 4.5 percent sales charge for the A shares) holds 35 to 40 companies that manager Alexander Motola thinks have been ignored despite rapid growth. The concentrated approach, he says, makes it easier to know holdings thoroughly. Over the past three years to March 1, the fund gained an annualized 33 percent. Among Motola's favorite stocks:
Amdocs (DOX). With a market value of $6.8 billion, Amdocs is "one of the bigger companies no one has ever heard of," says Motola. Recently $34, the stock trades at 20 times the $1.76 per share that analysts expect Amdocs to earn in the 2006 calendar year.
Las Vegas Sands (LVS). The company that owns the Venetian Resort Hotel Casino in Las Vegas is aiming for Asia. The Sands Macao, which opened in 2004, "essentially paid for itself in 10 months," Motola says.
Microsoft (MSFT). The empire is preparing to strike back. Thanks to its Windows operating system and Office software, Microsoft already has "two of the best monopolies in the world," says Motola. Now it is preparing to introduce Vista (the next version of Windows) and Office 2007, which should fuel sales growth.
PeopleSupport (PSPT). This small Los Angeles-based company has established call centers in Manila and Cebu, in the Philippines, staffed by thousands of accent-free, Americanized workers.