10 Stocks the Best European Fund Managers Have Been Buying and Selling
•February 16, 2026
0
Companies Mentioned
Why It Matters
These sector rotations signal European fund managers' confidence in cyclical and defensive‑resilient areas, potentially guiding investor sentiment and capital flows across the region. The stock‑specific trades highlight where top‑rated managers see earnings upside, offering clues for active investors.
Key Takeaways
- •Funds shift toward financials, healthcare, industrials.
- •Basic materials, consumer defensive, tech allocations decline.
- •ASML most held stock; RELX, SAP, Schneider Electric follow.
- •Lloyds sold; Roche bought; Prudential added.
- •Shell remains top holding for Robeco fund.
Pulse Analysis
European equity fund managers routinely adjust sector weightings to reflect macro‑economic signals and earnings expectations. The latest December rebalancing shows a clear tilt toward financial services and healthcare, sectors that benefit from rising interest rates and aging populations, while defensive and growth‑oriented areas like basic materials and technology see modest cuts. This pattern mirrors a broader rotation across the continent, as investors seek higher dividend yields and stable cash flows in an environment of tightening monetary policy.
At the stock level, the data underscores the divergent views among top‑rated funds. ASML, the semiconductor equipment leader, remains the most common holding, reflecting confidence in the long‑term demand for chip manufacturing. RELX, SAP and Schneider Electric also appear in multiple portfolios, indicating a preference for diversified, high‑margin businesses. Meanwhile, BGF European’s exit from Lloyds Banking Group and BGF European Value’s aggressive addition of Roche highlight a shift from traditional banking to pharma, where robust pipelines and defensive pricing can offset economic uncertainty. Prudential’s rise into the top ten, driven by Fidelity European Dynamic Growth, further illustrates a renewed appetite for insurance assets.
For investors, these insights provide a roadmap for aligning with the strategies of Europe’s most successful fund managers. Sector exposure to financials and healthcare suggests potential outperformance relative to defensive stocks, while the continued prominence of technology‑linked names like ASML signals selective optimism in high‑growth niches. Monitoring such portfolio changes can help active managers and institutional investors anticipate capital flows, adjust risk models, and capture upside in the evolving European market landscape.
10 Stocks the Best European Fund Managers Have Been Buying and Selling
Key Takeaways
-
European fund managers increased their weightings in financials and healthcare and reduced their exposure to basic materials and consumer defensive sectors.
-
Silver‑rated BGF European sold out of Lloyds Banking Group at the end of 2025.
-
RELX and SAP are 5‑star stocks owned across fund portfolios.
Each month, the latest available portfolios of the best large‑cap European equity funds are analyzed to identify which sectors and stocks Europe’s leading fund managers have been buying and selling.
The most significant increases in holdings in the top 10 holdings of these funds in December were in the financial services and healthcare sectors, and to a lesser extent, the industrials sector. Financial services holdings increased on average from 20.0 % to 20.8 %, driven mainly by BGF European Value, Fidelity European Dynamic Growth and BGF European.
Healthcare also edged higher, from 13.4 % to 13.7 %, with a particularly strong increase in BGF European Value and Fidelity European Dynamic Growth. Industrial stocks showed a modest aggregate rise, supported by additions in Comgest Growth Europe and BGF European. Consumer cyclical exposure also increased, notably in Comgest Growth Europe.
The greatest reductions in holdings in these funds were seen in the basic materials, consumer defensive and technology sectors. Basic materials fell from 5.5 % to 5.1 % on average, with sharp cuts in Fidelity European Dynamic Growth and Brandes European Value. Consumer defensive declined from 7.2 % to 6.9 %, mainly due to a sizeable reduction in Comgest Growth Europe, partially offset by increases in more value‑oriented funds such as M&G (Lux) European Strategic Value.
Technology dipped slightly overall, reflecting reductions in holdings in both Fidelity European Dynamic Growth and Comgest Growth Europe. Taken together, the adjustments suggest a rotation away from defensives and selected growth exposures in favor of financials and healthcare.
The Most Widely Held European Stocks
There is no single stock that is present in the top 10 holdings of all seven of these funds, demonstrating how portfolio composition can vary from fund to fund. Of those seven funds, three are value funds, three are growth funds and one is a blend of growth and value.
-
ASML Holding is the most popular stock in the portfolios, appearing in four funds and carrying the most weight in the Morningstar Europe Index.
-
RELX, SAP and Schneider Electric appear in three funds.
Notable Buys and Sells Among Top‑Rated European Funds
BGF European
All the top 10 portfolio holdings suffered selling during December, but the most significant sale was that of Lloyds Banking Group, which moved from first to second place in the top 10 between November and December.
Key Morningstar Metrics for Lloyds Banking Group – Analyst: Niklas Kammer, CFA
BGF European Value
The manager made a significant purchase in Roche Holding in December. The pharmaceutical company, which was not in the top 10 in November, was the largest holding in the portfolio at the end of December.
Key Morningstar Metrics for Roche
Brandes European Value
The manager made very few transactions affecting the fund’s top 10 positions during November. The most notable sell, however, was Deutsche Post, which dropped from fourth to ninth place between November and December.
Key Morningstar Metrics for Deutsche Post
Comgest Growth Europe
Sales affected all of the top 10 stocks in November, but Inditex was particularly hard hit. Despite this, the stock rose from fifth to fourth place in the top 10, thanks to its strong performance in December, when it rose 16.8 % in euros.
Key Morningstar Metrics for Industria de Diseño Textil (Inditex)
Fidelity European Dynamic Growth
The manager sold shares in most of the fund’s top 10 positions, except for Prudential. Heavy buying of the British financial institution pushed the stock into the top 10 in December.
Key Morningstar Metrics for Prudential
M&G European Strategic Value
During December, the purchase of Nordea Bank stock pushed the Swedish bank into fourth place in the top 10.
Key Morningstar Metrics for Nordea Bank
Robeco QI European Conservative Equities
The Robeco fund made further purchases in oil company Shell, which remains the most significant holding in the portfolio.
Key Morningstar Metrics for Shell
How the Best European Funds Are Selected
-
The selected funds are actively managed, distributed in any European country, with at least EUR 500 million in assets, belonging to one of the large‑cap European equity categories: large‑cap growth, large‑cap blend or large‑cap value.
-
The funds must be covered by Morningstar and have a Gold or Silver Medalist Rating. When the same manager manages two or more funds that meet the above criteria, only the fund with the largest assets is selected to avoid duplication.
-
The selected funds must also have monthly portfolios in the Morningstar database, enabling analysis of recent changes in the managers’ portfolios.
-
To calculate the value of individual securities bought and sold, it is assumed that managers executed transactions at an average price between the most recent portfolio date and the previous month.
The author(s) do not own shares in any securities mentioned in this article.
Find out about Morningstar’s editorial policies.
0
Comments
Want to join the conversation?
Loading comments...