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Cash is king in a bear market.
Take a look at the top holdings of the best mutual funds over the past decade and you'll find a lot of cash or some close equivalent.
Are the savviest money managers on Wall Street also market timers? Not really.
In almost any market, a broadly diversified mutual fund will have only 1% or2% of its assets in a single stock. But it might hold 5% in cash as it covers redemptions and trolls for new stocks.
The list of top-performing mutual funds over the past 10 years ranks diversified stock funds by total return. The figures are based on average annual performance through Feb. 28.
Of course, long-term winners can encounter short-term woes, as the year-to-date performance column shows. Putnam New Opportunities, with a large-cap growth stock portfolio, is among the hardest hit despite a top 10 ranking for the decade.
But most long-term winners have been near-term winners too, as the IBD rating shows. Eight of the top 10 funds have IBD ratings of A or better. None ranked lower than ...