Top Funds' New Buys: Lumber Liquidators, Celgene

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The country's best-performing funds the past three months have been adding retail issues, such asKrispy Kreme Doughnuts ( KKD ),Chuy's Holdings ( CHUY ),Domino's Pizza ( DPZ ),Lumber Liquidators ( LL ), andCabela's ( CAB ) in their latest reporting periods.

In this economy, Americans are still eating out, but choosing the fast-casual dining route with lower price points. That's why quick bite restaurants such as Domino's Pizza, Krispy Kreme andFiesta Restaurant Group (FRGI) have been doing well.

Although Chuy's Tex-Mex themed restaurants offer full-service dining, the average bill is still affordable for consumers.

Several IBD Leaderboard stocks were popular with top funds: Lumber Liquidators,Celgene (CELG) andCommVault (CVLT). They all remained within buy zones after clearing bases or add-on buy points.

IBD found 14 funds poured an estimated $172 million into Celgene. The developer of treatments for breast cancer, arthritis and other illnesses has been under solid accumulation since its June 2012 bottom, though volume has softened recently as the stock pushes to new highs.

Lumber Liquidators is hanging near its new high set last week after the stock cleared a three-weeks-tight add-on pattern. It remains in the buy zone.

CommVault has drifted back to the top of the flat base it cleared on March 14 in below-average volume.

Another bright spot in the market is financials. Managers of leading funds have continued to snatchOcwen Financials (OCN),Financial Engines (FNGN),Portfolio Recovery Associates (PRAA),Evercore Partners (EVR) andHFF (HFF).

Ocwen, which was featured in January's column before its attempt to break out of its consolidation, has started work on a new base. The mortgage servicer is trying to regain support its 10-week moving average. Its earnings are seen rising 254% this year and 17% next year.

Sell Side

Top-rated funds have been taking profit of medical stocks, includingAir Methods (AIRM),Pfizer (PFE) and Baxter International (BAX), in their latest reporting periods.

After hitting a 52-week high of 51 on March 7, Air Methods has pulled back in recent weeks. It's trading in a third-stage base. Such late stage bases are more prone to failure.



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: CAB , CHUY , DPZ , KKD , LL

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