All-Star Managers Fail to Make This Year's Cut

This year's surprises aren't just about cash. Five of these managers -- Danoff, Daftary, Muhlenkamp, Freeman and Rodriguez -- were bullish on energy stocks and were heavily invested in the sector when prices tanked through early autumn. Rodriguez takes the prize: He had 29% of his fund in energy stocks by the end of the summer.

Finally, three managers -- Miller, Muhlenkamp and Freeman -- suffered from big stakes in health insurance giant UnitedHealth (UNH Quote). The stock has been pounded this year as a regulatory probe into stock options cost the CEO his job. Most fund managers have reacted the way they always do -- by dumping the stock in panic, regardless of valuation.

Some obvious thoughts as we look to 2007? Many of the managers with the best records of beating the market remain bullish on energy. A fair few are bullish on UnitedHealth, too. And a worrying number are bearish on the stock market overall.