Top Mutual Funds Still Nibbling At Ocwen Financial


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The rallying stock market played favorites with retail-stock purchases made by top-performing funds in recent months, which includedLumber Liquidators ( LL ),Cabela's ( CAB ) andBrown Shoe Co. ( BWS ).

Financials also were among recent winners. Several financial stocks made the latest list of New Buys Of Top-Performing Funds, but only one is focused on mortgages: Ocwen Financial ( OCN ).

When this column last visited Ocwen in the Jan. 4 edition, the mortgage lender was working through a shallow consolidation, which four weeks later resolved into breakout from a cup-with-handle base.

Ocwen last week cleared the base's 39.35 buy point. It eased Monday but remained within 1% of that mark.

Institutional Support

In recent weeks, institutional support for the stock has grown. The number of top-rated funds buying Ocwen grew from 10 funds investing an estimated $24 million in their latest reporting periods frame to 38 funds plopping down $176 million.

That's an increase that can spark further research by successful investors .

The total number of funds owning the company has risen to 377 from 330 in June.

Ocwen has an IBD Composite Rating of 99. Its Relative Strength Rating has been 98-99 for nine weeks. Its Accumulation/Distribution Rating tipped up to B+ from B. Its up/down volume ratio has slipped a tad to 0.9 from 1 two weeks ago.

Among big funds that have had significant stakes recently is $21.3 billion Fidelity Balanced . Oppenheimer Small & Mid Cap Growth, with $359 million in assets, also has taken on some shares.

IBD Leaderboard stocks that have found favor among top-rated funds includeGrand Canyon Education ( LOPE ), Lumber Liquidators, andMichael Kors (KORS).

Sell Side

Top funds found disfavor with several medical stocks, includingPfizer (PFE),Regeneron Pharmaceuticals (REGN) andViropharma (VPHM) in their latest reporting periods.

These stocks have enjoyed their day in the sun, riding along their 52-week highs. Institutional selling should alert investors to watch for any other sell signals that crop up.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Mutual Funds
Referenced Stocks: BWS , CAB , LL , LOPE , OCN

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