By Barbara Friedberg
U.S. stocks are a favorite of Daniel Lugasi, portfolio manager at VL Capital Management in Winter Park, Florida. “For those investing in the U.S., we tend to favor a core and explore strategy. This approach allocates most of one’s assets to large-cap U.S. stock index funds with the remainder going into a concentrated portfolio of individual stock picks,” Lugasi says. The strategy invests in a core of passive index funds, representing the U.S. stock market with a smattering of well-researched stock picks; it incorporates the best of both active and passive management. Specifically, investors can outperform the broader market with specific stock picks without assuming excessive risk, he says.