The country's best-performing funds the past three months have
been buying tech stocks in their latest reporting periods.
The group faced some head winds in the October market
correction, but techs managed to eke out a 1.94% gain in
December. They gained 12.8% for 2012.
Two big Internet networking solutions firms added by top funds
includeEquinix (
EQIX
) andSolarWinds (
SWI
). Data storage firmsSeagate (
STX
) andWestern Digital (
WD
) were also popular among the smart money.
Managers of top funds were easing into chemical stocks, such
asAshland (
ASH
),Westlake Chemical (WLK),Polyone (POL) andNewMarket (NEU), in
their latest reporting periods.
Among IBD's 197 industries, chemicals-basic and -plastics
sub-groups were ranked among the top 10 as of Wednesday.
Title, property and casualty insurersFidelity National Title
Group (FNF) andFirst American Financial (FAF) were also bought by
top funds. As mortgage rates continue to stay low, these two
firms will benefit from the surge of new and refinancing
mortgages.
IBD spotted 10 best-performing funds buyingOcwen Financial
(OCN), investing an estimated $24.3 million in their latest
reporting periods. The $308 million Fidelity Select Consumer
Finance Fund owned a big stake in the firm.
The Atlanta, Ga.-based firm makes residential and commercial
real estate, business and consumer loans. It also takes on
troubled mortgages, an area big banks have been exiting.
As of October, it moved its servicing operations to St. Croix,
the U.S. Virgin Islands. In doing so, it keeps expenses down by
using an offshore labor force and minimizing taxes through
foreign incorporations. It already has subsidiaries in Luxemburg
and the Cayman Islands.
The stock performed very well in 2012. It soared from 14.48
last January to a 52-week high of 39.83 by mid-October. Since
then, it's pulled back into a 10-week tight base, sitting at 35,
just 12% off its high.
Sell Side
Leading funds unloaded big media stocks, such asWalt Disney
(DIS),CBS (CBS),Viacom (VIAB) andNews Corp . (NWS), in their
latest reporting periods.
The best-performing funds have been taking profits in
financials, includingVisa (V),MasterCard (MA) andCapital One
(COF).