Gerard Sullivan’s journey to becoming a successful portfolio manager was not always a clear path. Originally aiming for a career as a stock analyst, the booming asset management industry of the 1980s led him in a different direction. Working alongside some of the most renowned names in the business, Sullivan found mentorship under the legendary investor Peter Lynch, a relationship that would shape his future success.
In 1985, during a summer job at Fidelity, Lynch challenged Sullivan with a daunting task: analyzing European chemical companies, a task that was considered unconventional at the time. Despite facing language barriers and differences in accounting standards, Sullivan persevered, identifying undervalued opportunities in the market. His research paid off, with six of his stock picks landing in the top 20 names in the Magellan Fund, and four in the top 10, all doubling in value within six months.
Today, Sullivan manages the Putnam Investments Core Equity Fund (PMYYX), a $4.4 billion multicap fund he launched in 2010. Alongside his co-manager, Arthur Yeager, Sullivan employs a flexible investment strategy that targets growth and value stocks across all market capitalizations. Their approach has been successful, with PMYYX consistently ranking in the top percentiles of its category according to Morningstar.
Sullivan’s investment philosophy includes a focus on beaten-down stocks with limited downside potential, such as companies emerging from bankruptcy. One notable success story is Pacific Gas & Electric, which rebounded after filing for bankruptcy in 2019. By identifying undervalued opportunities and staying informed on management changes, Sullivan has been able to capitalize on market inefficiencies.
Looking ahead, Sullivan is bullish on mid-cap opportunities and smaller companies with growth potential. While he maintains holdings in megacap tech names, he sees more value in undiscovered gems that offer attractive valuations. By staying vigilant and conducting thorough research, Sullivan aims to uncover hidden opportunities that can deliver long-term returns for investors.
Ultimately, Sullivan credits his success to a willingness to learn from other investors and adapt his approach based on market conditions. By staying true to his investment principles and seeking out undervalued opportunities, Sullivan continues to deliver strong performance for his fund and investors.