The rallying stock market played favorites with retail-stock
purchases made by top-performing funds in recent months, which
includedLumber Liquidators (
) andBrown Shoe Co. (
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 (
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
Ocwen last week cleared the base's 39.35 buy point. It eased
Monday but remained within 1% of that mark.
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
That's an increase that can spark further research by
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
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
IBD Leaderboard stocks
that have found favor among top-rated funds includeGrand Canyon
), Lumber Liquidators, andMichael Kors (KORS).
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.