Top-Performing Mutual Funds Like Facebook

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Historically, October months have a scary reputation for big stock market crashes. But this October was a walk in the park.

Following a midmonth sell-off in September, the S&P 500 and the Nasdaq composite sharply reversed course and headed higher in the second week of October. The S&P 500 went on to set a fresh new high.

The nation's best-performing funds the past thee months have been gobbling up Internet content providers, such asFacebook ( FB ),BitAuto ( BITA ),SouFun Holdings ( SFUN ) andYandex ( YNDX ), in their latest reporting periods.

This week's IBD Industry Snapshot page featured Internet Content Providers. The group was ranked No. 7 among IBD's 197 industries as of Monday.

Among leading funds, consumer discretionary stocks also found favor, including retail restaurantsChipotle Mexican Grill ( CMG ) andBuffalo Wild Wings (BWLD).

Online leisure travel booking firmsPriceline.com (PCLN) andCtrip.com (CTRP) have also been strong performers.

Air travel will be more enjoyable now that the Federal Aviation Administration relaxed rules on the use of small electronic devices during takeoffs. Airline stocks, such asDelta Air Lines (DAL) andSpirit Airlines (SAVE), should benefit from this new ruling.

IBD spotted 117 funds buying Facebook, investing an estimated $3.5 billion in the social media firm's stock.

The stock has shot up 50% since breaking out in July and is now testing its 10-week moving average.

On Oct. 30, Facebook reported third-quarter earnings surged 108%, blowing away estimates. Revenue rose 60% to about $2.02 billion. Both were the largest increases in eight quarters.

But CFO David Ebersam noted during a conference call that daily use by younger teens, while still at high levels, declined in the quarter. Mobile ad growth -- a key metric -- continued to boom.

On Oct. 14, Facebook acquired Israeli mobile analytics startup Onavo. The deal will help Facebook speed up its mobile apps.

Sell Side

Gilead Sciences (GILD) came under some selling, as 68 funds sold shares while 57 bought. The stock is 8% past the buy point of a late-stage base.

Earnings growth has slowed the past couple of years.



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: BITA , CMG , FB , SFUN , YNDX

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