Top Funds Favor Health Care, Retail In Recent Buys ALXN CTRX

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The country's best-performing funds the past three months have been loading up medical issues, such asAlexion Pharmaceuticals ( ALXN ),Catamaran ( CTRX ),HCA Holdings ( HCA ) andAlign Technology ( ALGN ) in their latest reporting periods.

Medical stocks have been performing very well this year. Among IBD's 197 industry groups, four medical subgroups ranked in the top 10 as of Tuesday.

The biotech/biomed group was up almost 50% as of Tuesday.

Leading managers of top-performing funds also have been shopping for retailers, including apparel makersLululemon Athletica ( LULU ),Gap (GPS),Michael Kors (KOR),Chico's FAS (CHS) andFootlocker (FL). These retailers could benefit from the upcoming holiday season.

IBD spotted 38 funds adding Catamaran. They invested an estimated $170 million.

Two popular Fidelity funds, the $86.7 billion Contrafund and $44.1 billion Growth Company, owned big stakes in the firm as of their latest reporting periods.

The Lisle, Ill.-based firm provides pharmacy benefit management services and health care IT services. The company was formerly called SXC Health Solutions.

Catamaran recently launched a specialty plan BriovaRX, delivering personalized, holistic care to patients with complex and chronic conditions, such as HIV, multiple sclerosis and Crohn's disease.

The stock had a 2-for-1 split Tuesday. That's its second 2-for-1 split in two years.

After hitting an intraday high split-adjusted price of 52.39 on July 2, the stock has been etching a nice three-month-long base.

The building of the right side of the base in recent weeks showed some solid volume, indicating that big institutions also like this stock.

Catamaran has been growing healthy double-digit earnings the past six quarters. Revenue growth for the same periods is also impressive.

Sell Side

Leading funds have been selling into the rally, taking profits of top household brands, such asMacy's (M),Discover (DFS),Walt D isney (DIS) andGeneral Elec tric (GE), in their latest reporting periods.

Aerospace defense firmRaytheon (RTN) saw a big sell-off on high volume the past few days.

Telecom stocksVerizon (VZ) andDirecTV (DTV) were also on top funds' latest sell list. Both stocks sport a Relative Strength Rating of 68.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds

Referenced Stocks: ALGN , ALXN , CTRX , HCA , LULU

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