Top Funds' New Buys: Tech Leisure And Financials


With the stock market chugging higher in recent months, top fund managers have been feasting on tech, leisure and financial stocks.

The country's leading stock mutual funds in three-month performance have been pouring money into the likes ofLinkedIn ( LNKD ),Aruba Networks ( ARUN ),Yahoo ( YHOO ),IXIA ( XXIA ) andWestern Digital ( WDC ) in their latest reporting periods.

Leisure stocksHertz Global Holdings (HTZ),HomeAway (AWAY),Avis Budget Group (CAR) andMadison Square Garden (MSG) have been stellar performers among favored holdings.

Financials continued their nice run withOcwen Financial (OCN),FleetCor Technologies (FLT),NetSpend Holdings (NTSP) andEvercore (EVR) leading the way.

IBD found that 37 top-performing funds added computer networking firm IXIA, investing an estimated $49 million in their latest reporting periods. The $18.5 billion Columbia Acorn Fund owned a stake in the California-based firm.

The stock has been in a strong uptrend since mid-November, rising to a 52-week high of 21.48 from 13. It currently sits at just 3% off that high at 21. Analysts see EPS rising 67% in Q1 and 34% for the year.

Let's revisit mortgage lender and servicer Ocwen Financial. Since we last featured the stock on Feb. 5, the company posted Q4 results of 47 cents. That's up 488% from a year earlier, but 3 cents below analyst estimates. On the upside, Q4 revenue grew 51% to $236.4 million, beating estimates.

Ocwen completed its acquisition of Homeward Residential Holdings. It also announced newly acquired Residential Capital mortgage-servicing rights in collaboration with Walter Investment Management. These two buys should boost Ocwen's portfolios and bottom line.

After breaking out of a cup-with-handle base on Jan. 31 and trekking up to 41.87 on Feb. 13, the stock sank 8% below the 39.35 buy point, scuttling the breakout attempt. Since then, its reversed course and is back above the buy point.

Sell Side

Top-performing funds have been unloading medical stocks, such asPfizer (PFE),Baxter International (BAX) andAmgen (AMGN), in their latest reporting periods.

Top funds also have been selling big media firmsTime Warner (TWX),Viacom (VIAB),CBS (CBS) andWalt Disney (DIS). They're all near 52-week highs.

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: ARUN , LNKD , WDC , XXIA , YHOO

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