Calcutta 2024: Top fundies name 14 stock picks for the running of the Golden Bull

Each year, hundreds of the funds management industry's finest flock to the classy institution that is the Ivy for the Australian Fund Manager Awards and its stock-picking competition, the Calcutta. 

While students partied at the pool club a few levels up, fund managers and brokers settled in for what can only be described as the Academy Awards of Australian finance. There were fine wines, cheap laughs, and of course, a charitable cause - but most of all, there was a focus on top fund managers (and their top stocks). 

So, why should you care? In what can only be considered a great advertisement for active funds management, the portfolio of last year's 17 stock picks beat the market by 25% over 12 months.

Life360 (ASX: 360) from the team at Regal delivered a 43% return, while Perpetual's stock Newcrest Mining (ASX: NCM) rose 50% over the year. 

Meanwhile, the team at Evans & Partners had the second-best long stock pick, with Neuren (ASX: NEU) rising 52%. The best long stock pick from last year was Codan (ASX: CDA), which was picked by the team at Evolution Capital. 

Fund managers who choose to "short" stocks as part of the competition are awarded for their bets, with the losses notched by the stocks doubled during the time period. 

With this in mind, the race was led by Sean Fenton and the team at Sage Capital and Paul Taylor and his team at Fidelity - who both shorted stocks as part of the Calcutta. 

Fenton bet the bubble would burst for Brainchip (ASX: BRN), with the stock's share price falling around 80% since then. Meanwhile, Taylor picked Lake Resources (ASX: LKE) as his short - with the stock falling around 84% over the time period. 

This year, 14 funds management groups and brokers are taking part in the Calcutta. Only one stock pick this year is a short - once again, from the team at Fidelity. 

So, without further ado, here are this year's stocks: 

#1: Mineral Resources (ASX: MIN)

Fund Manager: Auscap Asset Management

Tim Carleton and the team at Auscap have selected Mineral Resources as their stock pick in their first-ever Calcutta. Mineral Resources has been a massive wealth generator for investors over the past five years, delivering a return of nearly 330%. 

That said, the diversified lithium, iron ore and mining services company's share price has slid around 38% since hitting a peak of $96 in January, with lower lithium prices to blame. But with mining heavyweight Chris Ellison at the helm, there's still plenty of promise for this stock. 

Fund Manager: Perpetual 

The team at Perpetual has selected Iluka Resources as their pick for the year ahead - a mineral sands business with operations globally. Since hitting a peak in June, the stock's share price has slid around 40% - yikes - thanks to mineral sands prices rolling over. 

#3: ResMed (ASX: RMD)

Fund Manager: Airlie Funds Management 

As fans of Emma Fisher would know, Airlie recently dubbed ResMed as the "most outstanding idea on the ASX". It's no surprise then that the team has chosen the sleep apnea device company as their stock pick for the Calcutta. 

The stock's share price has sunk around 38% year to date, as fears mount that weight loss drug Ozempic could finally end obesity. But Airlie doesn't think the impact will be as bad for ResMed as the naysayers would have you think and are happy to call the bottom on this stock. 

#4: CSL Limited (ASX: CSL)

Fund manager: Sage Capital 

Like ResMed, CSL has been hit with the same Ozempic fears. Since mid-June, its share price has fallen around 24% into the red. That said, 17 brokers rate the stock a buy, and Sage Capital's Sean Fenton and the team agree. Given the team backed last year's runner-up, you'll definitely want to watch this one. 

Fund manager: Wilson Asset Management 

Unlike the other stocks on this list so far, Wilson Asset Management isn't catching a falling knife and is instead tipping a new IPO as its Calcutta stock pick. Pokie machine maker Light & Wonder listed on the ASX in May, and since then, has seen its share price rise 28%. 

Fund manager: Perennial Partners

Perennial Partners once again tipped Virgin Money UK as its stock for the Calcutta, after a very successful year that saw the stock return around 42%. But can the stock do it again so Perennial earns another podium position this year? 

Well, it's trading on a 5 times PE, it boasts surplus capital on its balance sheet and buybacks are on the horizon. Then again, the UK economy is in the trenches. So who knows how it will turn out? 

#7: Stanmore Resources (ASX: SMR)

Fund manager: Regal Funds Management

#8: Dicker Data (ASX: DDR)

Broker: Evans & Partners

E&P nominated IT distributor Dicker Data as its pick, led by billionaire David Dicker. Dicker Data was a seriously sexy stock pick during the COVID pandemic, but since hitting a peak in late 2021, its share price has cascaded down around 35%. 

That said, post result, the stock is up 19% - after the IT company reported that EBITDA was up 15.4% and sales were up 9.4%. 

#9: Nanosonics (ASX: NAN)

Fund manager: Hearts and Minds

Hearts and Minds CIO Charlie Lanchester has selected disinfectant tech company Nanosonics as his pick for this year's Calcutta. 

Nanosonics has had a tough six months, with its share price sinking around 34%. And while brokers are split on the stock's next steps (7 have it as a sell, 7 rate it a hold, and 3 rate the stock a buy, according to Market Index's Broker Consensus tool), Charlie believes the stock could surprise to the upside thanks to Nanosonic's development of Coris - its second product. 

#10: Deep Yellow (ASX: DYL)

Fund manager: Fidelity 

Last year's top stock pickers Fidelity selected another short for the Calcutta this year. However, this time, it's Deep Yellow. For those who don't know the company - I sure didn't - Deep Yellow is a uranium development company with two uranium projects at the feasibility stage located both in Namibia and Australia. 

Deep Yellow is run by former Paladin CEO John Borshoff and has seen its share price run 88% higher year to date, as uranium fever continues to grip investors. 

#11: De Grey Mining (ASX: DEG)

Broker: Canaccord 

Joining the Calcutta for the very first time is Canaccord, with its stock De Grey Mining. Of the 14 brokers who cover the stock, 12 rate the gold exploration and development company a buy. De Grey's projects are located in one of the world's best Tier 1 mining jurisdictions - with positions in Mallina Basin of the Pilbara Craton, in the northwest of WA. 

But as the stock moves into construction over the next 12 months, could some unexpected hiccups be on the horizon? Canaccord is willing to bet it will all go smoothly. 

#12: Pilbara Minerals (ASX: PLS)

Fund manager: WaveStone Capital 

WaveStone Capital pitched the same stock as last year, Pilbara Minerals, but this year has decided to go long after shorting the lithium darling in the competition in 2022/2023.

Unlike some of the other lithium darlings on the ASX, Pilbara is actually producing - and is making a lot of cash at that. Around half of the brokers who cover the stock rate it as a buy, and, with the stock down 23% over the past 12 months, WaveStone is betting that the tables will turn for lithium over the coming year. 

Fund manager: Evolution Capital 

Evolution Capital's Neil Carter has selected a smaller lithium player as his stock for the Calcutta. Patriot has a lithium resource in Canada, and Albermarle owns 5% of the company. 

Patriot counts former Pilbara Minerals CEO Ken Brindsen as its non-executive chairman and director. Despite the weakness in the lithium price, its share price has returned around 76% year to date. Patriot isn't making any money, though. 

#14: Block Inc (ASX: SQ2) 

Fund manager: Ausbil 

Last but not least is a surprising pick from Paul Xiradis and the team at Ausbil. Since taking out Afterpay, Square/Block's share price has cascaded into the red, down 61% since January 2022. As the AFR reported earlier this month, Block’s total market capitalisation (US$25.43 billion) is now less than what Block paid for Afterpay in 2021 (US$29 billion). 

That said, 36 brokers rate the stock a buy, while 13 are holding and 2 rate it a sell. They could be on to something.