How mutual fund managers pick the stocks

General
1

i want to know that how the successful mutual funds managers do the following:

  1. how do they do technical analysis, is it the same or different from the retail investor. (the question is basic but is important from its aspects point of view)
  2. how they do the stock screening and select the stock on what basis ?
  3. how is their approach different from the traders point of view?
2

  1. Their main analysis is based on fundamentals and not technicals as they cannot afford to enter that late into the party. They simply assess the current and future value of a stock and buy/sell it when price reaches an undervalued or overvalued zone. The value of stock is arrived using macro and micro analysis of economy and stocks.

  2. Stock selection is probably done on the basis of bottom up approach and they study the companies in detail and then use micro and macro fundamentals to arrive at a reasonable value of that company. Then based on current market value , they decide to whether accumulate or distribute the stock.

  3. It is completely different as they are not waiting for price to cross this or that line.They are making their decisions on the basis of current and forecasted value of their holdings.

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