10 Stock Picks of the Highest-Rated Money Managers

BOSTON (TheStreet) -- Some of the best investment managers have made Devon Energy(DVN) one of their top picks, by either initiating or significantly increasing their stakes in the oil and gas exploration and production firm.

This came to light as part of Morningstar's tracking of the stock picks of 26 of its highest-rated funds for its Ultimate Stock Pickers series.

The fund-rating firm sifts through the 26 funds' quarterly reports for their top new buys and for particularly significant increases in existing holdings quarterly.

Devon Energy popped up in both categories in the second quarter, when five of the 26 funds made "high conviction" purchases, which represent fund managers' additions to already existing holdings in their funds in the same stock during any single period, or new stakes. Three funds initiated positions in the stock in the period, while two bumped up their stakes.

"It is rare to see five of our Ultimate Stock Pickers making high-conviction purchases and the fact that three of the managers that were buying were building new positions in the name is, in our view, an indication of strong conviction behind the name," said Brett Horn, a Morningstar associate director, in a report.