Morningstar lauds 3 leading managers

Three well-known names in the mutual fund business picked up “manager of the year” awards Thursday from Morningstar Inc.

The research firm chose Bill Gross, who steers the $108-billion Pimco Total Return fund in Newport Beach, as bond fund manager of the year.

Will Danoff, who runs Fidelity Investments’ $81-billion Contrafund in Boston, was named U.S. stock fund manager of the year.

Also, Hakan Castegren, Bermuda-based manager of the $28-billion Harbor International Fund, was chosen top international stock fund manager.

Pimco Total Return gained 8.6% in 2007, Contrafund surged 19.8% and Harbor International rose 22%. All three performed better than about 90% of their respective peer funds.

Morningstar said it bases its annual awards on portfolio performance, whether funds are “shareholder friendly” in terms of fees and other factors, and on managers’ willingness to “show courage in their convictions.”