The managers of the past three months' top-performing mutual
funds have been gorging on Internet content providers, data from
their latest holdings reports show.
And many have done well as the stock market defied gravity yet
again and pulled out of a short-lived correction on Sept. 10.
The Nasdaq gained 5%, while the S&P 500 rose 3% last
month. The Fed surprised investors by delaying the tapering of
bond purchases, thus adding fuel to investors' appetite for
Social media giantFacebook (
) has attracted buying from 75 leading funds, pumping an
estimated $2.2 billion.LinkedIn (
) also garnered buying interest by top funds. Internet search
) andGoogle (
) were bought heavily by the best-performing funds.
As of Tuesday, the group was ranked No. 11 among 197
Leading funds have been indulging in the leisure travel stocks
such asPriceline.com (
),Ctrip (CTRP) andTripAdvisor (TRIP) in the latest filings.
Heavyweight medical issues,Celgene (CELG) andActavis (ACT),
also have been favorites of top funds.
IBD saw 30 top-performing funds gobbling up LinkedIn,
investing an estimated $155 million in their latest reporting
The $124 billion American Funds' Growth Fund of America added
the stock to its holdings.
Other top institutional holders of LinkedIn include Jennison
Associates, T. Rowe Price Associates and Vanguard Group,
according to a Credit Suisse report.
The Mountain View, Calif.-based LinkedIn provides a social
media platform for professionals to connect, share knowledge and
find business opportunities. The network has over 90 million
members in over 200 countries and territories.
Since its IPO in 2011, LinkedIn has notched healthy quarterly
earnings and revenue growth.
The stock also reflects the company's stellar fundamentals.
The stock broke out of an 11-week base in mid-July and has
continued to trek higher, rallying 24% to trade near its 52-week
high of 258. In the past four weeks it's been consolidating
Top funds have been selling energy stocks such asHelmerich
& Payne (HP),Noble Energy (NBL) andPioneer Natural Resources
(PXD). They're all near new highs. But amid high supply and weak
demand, oil prices have pulled in September.