Top Performing Funds Play Favorits


The nation's top-performing funds the past three months have been ramping up their buying of medical and Internet stocks.

They've had varying degrees of success resisting the downward pull of the stock market in July

Large drug providers, such asActavisA CT,Allergan ( AGN ),Questcor ( QCOR ) andSalix Pharmaceuticals ( SLXP ), have been steady performers for investors .

Hospital stocks, such asUnited Health Services ( UHS ) andHCA Holdings ( HCA ), have been soaring.

Internet content providers, includingFacebook (FB) andBaidu (BIDU), have continued to be mainstays in the portfolios of top funds.

Apple (AAPL), maker of iPhones, was also a staple among top-performing funds.

Managers of leading funds have also been adding apparel makers, includingHanesbrands (HBI) andUnder Armour (UA).

Retailers such as luxury furniture storesRestoration Hardware (RH) and casual fast-food chainChipotle Mexican Grill (CMG) are also popular among best-performing funds.

IBD spotted 21 top-performing mutual funds loading upAvis Budget Group (CAR), investing an estimated $16.7 million. The $16.6 billion Fidelity Blue Chip Growth Fund added the stock in its latest reporting period.

The Parsippany, N.J.-based firm provides car and truck rentals to businesses and consumers through Avis and Budget brands. It runs most of its 10,000 rental locations in North America, Europe and Australia directly.

It also owns Zipcar, a car sharing and car club service for its 870,000 members. You can join the club for as low as $6 a month.

Avis' stock has been in a steady uptrend since clearing a 22-week base in late October last year.

It saw a short pullback in mid-January, but quickly bounced back to notch new highs. Since then, Avis gained 50% to a 52-week high of 62 on July 3. The stock, now in the fifth week of a possible flat base, rose 3% on Tuesday on solid second-quarter earnings results. Earnings growth climbed 36% while revenue edged up 10%.

Analysts see earnings rising 32% this year and 27% next year.

Sell Side

Top funds have been unloading leisure stocks, such as casino gambling providerInternational Game Technology (IGT) and educational multimedia firmDiscovery Communications (DISCK).

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: AGN , QCOR , SLXP , UHS , HCA

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