10 Stocks the Best US Fund Managers Have Been Buying Recently

Why It Matters

The concentration of capital among elite managers signals where sophisticated investors see growth, defensive resilience, or undervaluation, guiding broader market sentiment and portfolio allocation decisions.

Key Takeaways

• Netflix leads with six top managers buying
• ServiceNow offers wide moat, undervalued amid software sell‑off
• Medline benefits from prime‑vendor contracts and aging demographics
• Keurig Dr Pepper pursuing $18B coffee merger, integration risk
• Allstate overvalued despite strong underwriting margins

Pulse Analysis

The early‑2026 market turbulence has sharpened investors' search for durable earnings and clear competitive advantages. By filtering for active large‑cap funds with Gold, Silver or Bronze Morningstar ratings and limited holdings, analysts identified a concise list of ten stocks that elite managers are adding. This methodology highlights not just momentum but also the underlying fundamentals that attract capital when broader sentiment is uncertain. The resulting basket reflects a strategic tilt toward sectors with resilient cash flows—streaming services, enterprise software, and healthcare distribution—while also capturing opportunistic plays in consumer staples and insurance.

Within the lineup, wide‑moat leaders such as ServiceNow and Merck stand out for their defensive positioning amid a software sell‑off and a challenging pharmaceutical environment. ServiceNow’s deep‑integration model and high retention rates suggest it can weather AI‑related hype, while Merck’s diversified pipeline, anchored by Keytruda, offers upside despite modest revenue growth. Conversely, Netflix remains the top pick despite a narrow moat, as its international subscriber growth and cash‑flow generation keep it fairly valued. Health‑focused Medline leverages prime‑vendor contracts to lock in recurring revenue, aligning with demographic trends that favor increased medical‑surgical product demand.

For investors, the list underscores a balanced approach: blend high‑moat technology with steady‑cash‑flow healthcare and selectively overvalued but high‑margin names like Allstate. The upcoming integration of Keurig Dr Pepper’s coffee business will test execution capabilities, while the broader market will watch how these managers navigate inflationary pressures and potential rate hikes. Monitoring earnings guidance, moat durability, and sector‑specific catalysts will be crucial for capitalizing on the smart‑money trends identified in this early‑year snapshot.