With the stock market chugging higher in recent months, top
fund managers have been feasting on tech, leisure and financial
The country's leading stock mutual funds in three-month
performance have been pouring money into the likes ofLinkedIn (
),Aruba Networks (
) andWestern Digital (
) 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
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.
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.