Top-Rated Stocks In Top Funds Hold Up Well In Pullback

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Top-performing fund managers tracked by IBD are no doubt pleased with how some of their recent buys have been holding up in the market correction.

Among leading stocks faring well have beenQuestcor Pharmaceuticals ( QCOR ),LinkedIn ( LNKD ),Facebook ( FB ),Actavis ( ACT ) andCelgene ( CELG ).

Most are either forming late-stage bases or are extended from recent buy points.

IBD spotted 97 top-performing funds, as measured by three-month performance, buying Facebook in their most recent reporting periods. They invested an estimated $1.14 billion. The social networking site's stock leapt above a 32.61 buy point in late July in huge volume. The surge came after the company blew past Q2 earnings estimates, helped by better-than-expected mobile device-related ad revenue.

The stock offered up an alternative entry at 39.42 and has since climbed 6% beyond that level and out of buying range.

Analysts tracked by Thomson Reuters see Q3 earnings climbing 50%.

EMarketer last week estimated that Facebook's share of mobile Internet ad revenue will be 15.8% this year, up from 5.4% in 2012, the year Facebook launched its first paid mobile ad.

Actavis' stock price is about where it was when it was featured in last month's New Buys feature, while the broad market as gauged by the S&P 500 is down about 4%. In the interim, the drugmaker's stock meandered down to its 10-week moving average line, where it found support last week. It's now 4% above that line and 3% past 133.10 buy point of a second-stage flat base.

IBD counts 89 top performing funds making recent purchases, with an estimated investment of $932 million.

Among funds with recent positions are Fidelity's Magellan and Contrafund.

Sell Side

Sometimes a leading stock ends up on both the New Buys and the Latest Sells lists. Confusing? Not after studying the stock's recent history and ratings. Take Celgene. The stock has doubled since breaking out of a first-stage base about a year-ago. It's natural for funds to trim positions of big winners.

But it's also clear the biotech firm remains attractive. Its IBD Composite Rating is 99, the highest possible. And Celgene's Accumulation/Distribution Rating is B, indicating continued institutional support.



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: ACT , CELG , FB , LNKD , QCOR

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