This fund manager would invest $10,000 in these three "superior quality" stocks

The case for Intercontinental Exchange (NYSE: ICE)

Intercontinental Exchange (ICE) is a global operator of exchanges and clearinghouses that facilitates trading in a wide range of financial and commodity markets. Founded in 2000, ICE has emerged as a leading player in the financial industry, offering a diverse portfolio of products and services to market participants worldwide.

It’s not dissimilar to a bustling farmer's market, but instead of cabbages and apples, we're dealing with futures contracts and equities. 

Now, why should you care? Because much like our hypothetical farmer's market, the demand for these services tends to hold steady, even when the world around us is unpredictable. It's like being the owner of the marketplace instead of worrying about whether your tomatoes will sell. And it’s why its CEO Jeff Sprecher calls it an “all-weather company”.

In addition, Intercontinental Exchange is currently working to revolutionise the mortgage ecosystem through a series of strategic acquisitions. One such acquisition is of Black Knight, a key player in the mortgage space. Although a decision from the FTC is still pending, we are of the opinion that the acquisition will proceed following the divestiture of Optimal Blue (a subsidiary of Black Knight). 

We view the resolution of any remaining concerns related to the Black Knight acquisition as a favourable development for Intercontinental Exchange, regardless of the deal's eventual outcome.

The case for GE Healthcare (NASDAQ: GEHC)

GE Healthcare, a former subsidiary of General Electric (GE), is a 130-year-old startup that recently completed its spinoff from its parent company and began trading on the NASDAQ this year. GE Healthcare focuses on medical imaging, diagnostics, and bio-manufacturing.

There's a saying in investment circles - "The world will always need healthcare" and it's absolutely true. As much as we all love superfoods and the latest fitness trends, sickness and disease are an unfortunate reality. And GE Healthcare stands at the forefront of fighting these challenges with technology.

GE Healthcare has a worldwide presence, functioning in over 160 nations, supported by a robust team that comprises more than 10,000 sales experts, 8,500 field engineers, and has its manufacturing base spread across 43 locations in 17 different countries. The surge in the adoption of precision healthcare is driving the demand for innovative health services, and an aging population further propels the potential for revenue growth.

GE Healthcare is also a spinoff, and one of super-investor Joel Greenblatt’s favourite types of investments. In fact, we wrote about the man and his investment strategy in 2018:

Investment Theme

Book Number 10 - You Can Be a Stock Market Genius by Joel Greenblatt of Gotham Capital (Revised May 18) 

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A first-rate business, led by a dedicated management team and shedding the constraints of the industrial behemoth GE, the company presents an attractive prospect for investors with a long-term perspective.

The case for Microsoft (NASDAQ: MSFT)

Finally, market stalwart Microsoft is a company that we have owned for 8 years, and whilst the stock has increased more than 7x since this time, we continue to be sanguine about its prospects.

Satya Nadella, CEO of Microsoft, emphasised the role of digital technology in driving economic growth. He believes that every industry and every organisation will have to transform itself with digital technology. Microsoft's mission is to empower every person and every organisation on the planet to achieve more, highlighting the role of their technology in productivity and economic growth.

Microsoft provides the fundamental structure upon which other systems, applications, and technologies are built and operated. This is best exemplified by its operating systems, Windows and its cloud platform Azure. These platforms create an ecosystem where each piece benefits from the other and create a network effect that enhances Microsoft’s overall value proposition. 

Their expansive partner network comprises over 400,000 global organisations and generates eight dollars for every dollar Microsoft earns. This partner network creates a defensible moat and is under-appreciated by the market. Lastly, we are of the view that Microsoft is strategically positioned to reap significant benefits from the ongoing digital transformation across all sectors in the next decade.