Top Funds Load Up On Social Networking Stocks

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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 stocks.

Social media giantFacebook ( FB ) has attracted buying from 75 leading funds, pumping an estimated $2.2 billion.LinkedIn ( LNKD ) also garnered buying interest by top funds. Internet search enginesYandex ( YNDX ) andGoogle ( GOOG ) were bought heavily by the best-performing funds.

As of Tuesday, the group was ranked No. 11 among 197 industries.

Leading funds have been indulging in the leisure travel stocks such asPriceline.com ( PCLN ),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 periods.

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 recent gains.

Sell Side

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.



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: FB , GOOG , LNKD , PCLN , YNDX

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