What Stocks Top Funds Are Buying Now


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The country's leading funds the past three months continued to add medical and transportation stocks to their portfolios as the stock market continued to defy the economy's wall of worry.

Purchases were made as the Nasdaq kicked off the summer with a gain of 3.9% in June while the S&P 500 rose 1.9%.

Big drug firmsQuestcor Pharmaceuticals ( QCOR ),Shire ( SHPG ),Salix Pharmaceuticals ( SLXP ),Allergan ( ALGN ) andActavis ( ACT ) have been steady performers the past 12 months. The Medical-Ethical Drug group was ranked No. 1 among IBD's 197 industries as of Wednesday.

Transportation issues such asTrinity Industries (TRN),Southwest Airlines (LUV) andSpirit Airlines (SAVE), have continued to be loved by top-notch funds in their latest reporting periods.

A handful of chipmakers are having their day in the sun, includingNXP Semiconductors (NXPI),Skyworks Solutions (SWKS),Avago Technologies (AVGO) andCavium (CAVM). The sector was featured on last Monday's Industry Snapshot.

A selected few consumer discretionary stocks, such asKeurig Green Mountain ,Harman Industries (HAR),Under Armour (UA) andRestoration Hardware (RH), were also loved by best-performing funds.

IBD spotted 37 top-performing funds snatching upKeurig Green Mountain (GMCR), investing an estimated $134 million in their latest reporting periods. The $140 billion American Funds Growth Fund of America holds a big stake in the company.

The firm is known for its single-serve coffee brewers called Keurig and related coffee portion packs as well as other specialty drinks.

It recently inked a deal with Nestle to bring Coffee-Mate branded capsules for Keurig single-cup brewers. The partnership will create the first two-in-one K-cups of both coffee and creamer. The packs will come in original and French vanilla flavors.

A new hot brewer system (Keurig 2.0) is set to debut this fall and use only owned or licensed portion packs.

Keurig's stock is working through the top part of the handle in a second-stage base. It's hovering just 3% off its 52-week high of 128.04.

Sell Side

Top funds have been dropping REIT stocks, such asWinthrop Realty Trust (FUR),Chesapeake Lodging Trust (CHSP) andRegency Centers (REG), 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 Nasdaq, Inc.

This article appears in: Investing Mutual Funds
Referenced Stocks: QCOR , SHPG , SLXP , ALGN , ACT

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