BOSTON ( TheStreet) -- Eric Schoenstein, whose Jensen Portfolio (JENSX) has more than doubled the returns of the S&P 500 Index over five and 10 years, is avoiding energy stocks such as Exxon Mobil (XOM) and Marathon Oil (MRO) and sticking to large-caps including Microsoft (MSFT), PepsiCo (PEP) and 3M (MMM).
Schoenstein and his fellow managers couldn't be more contrarian, as investors move into the riskiest assets, including little-known metals to small-cap tech firms to emerging-markets exchange traded funds. In the fourth quarter, energy was the best-performing sector in the S&P 500, and the Jensen Portfolio was held back as a result.
The Jensen Portfolio returned 9.3% in the three months through December, trailing the S&P 500's gain of 10.8%. Exxon and Marathon are up more than 30% over the past six months, outpacing the broader market. The turmoil in Egypt has pushed crude prices even higher, with no immediate resolution foreseen.
Still, the fund returned an annual average of 5.1% during the past five years, even though the recession torpedoed the stock market in 2008 and early 2009. The S&P 500 rose 2.1% in that time.So why did Schoenstein purposely pass over the energy space? "It's not so much that we purposely leave them out
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