Top-Performing Funds Ease Their Buying


The stock market switched gears in March and pulled back after running up in February.

Medical stocks, especially biotechs, were severely punished in the fray. The biotech-heavy Nasdaq shed 2.5% in March. The S&P 500 was up 0.6% in the first month of spring. The Dow rose 0.8%.

Managers of the top-performing funds the past three months have eased their buying overall.

But top funds have been adding to transportation sector holdings, such as airlinesSpirit Airlines ( SAVE ),Delta Air ( DAL ),Alaska Air Group ( ALK ) andSouthwest ( LUV ), in their latest reporting periods.

As of Wednesday, IBD's transportation airline group ranked No. 8 among 197 industries.

Natgas shipperGaslog ( GLOG ) and railcar makerTrinity Industries (TRN) have been performing well.

A handful of tech issues have been grabbing the attention of best-performing funds.

Gaming giantElectronic Arts (EA) has been heavily added by top funds, such as $11.1 billion Fidelity OTC Portfolio Fund in its latest reporting period.

Social media behemothFacebook (FB) has attracted buying from 15 top funds, investing an estimated $69 million. The $109 billion Fidelity Contrafund owned a stake in the firm.

IBD spotted 20 leading funds loading up onKeurig Green Mountain (GMCR), investing an estimated $30 million in their latest reporting periods. The $5.3 billion Goldman Sachs Growth Opportunity Fund added shares.

The Waterbury, Vt.-based firm distributes coffee, tea and other hot beverages via single cups called K-Cups to supermarkets and major retail stores. It also sells the Keurig single-cup brewing systems that use the K-cups.

Keurig Green Mountain has partnered with major coffee brands such as Starbucks, Peet's Coffee & Tea and Italian brand Lavazza to bring the best coffees to consumers through K-Cups for various Keurig systems.

After breaking out of a five-month long base in early February, the stock has been working on a shallow base. It's currently sitting just 12% off its 52-week high of 124.

Sell Side

The best-performing funds have been selling oil- and gas-related stocks such asPioneer Natural Resources (PXD),Baker Hughs (BHI) andHelmerich & Payne (HP) in their latest reporting periods.

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: SAVE , DAL , ALK , LUV , GLOG

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