The Stocks the Funds Are Buying

We all know which stocks made Wall Street's Buy List. What I want to know -- and I'm guessing you do, too -- is who's doing the buying. Which funds are buying Wall Street's most popular stocks this week ... and how does their judgment compare with that of our Motley Fool CAPS community?

Here's our latest group of contenders:

Company

Currently
Fetching

CAPS rating

ICF International

$27.14

*****

Cubic

$45.38

***

BSD Medical

$5.95

***

International Shipholding

$20.69

****

Leap Wireless

$79.00

**

Sources: Motley Fool CAPS, Yahoo! Finance

List-topper ICF International, a government consulting firm, has quite a fund following. Here's a sampling:

  • Bridgeway Ultra-Small Company (BRUSX), a cheap closed fund that's also one of the past decade's 10 best.
  • Frontegra IronBridge Small Cap (IBSCX), as a five-star fund, it closely mirrored the returns of Russell 2000 over the past five years.
  • Bridgeway Micro-Cap Limited (BRMCX), yet another closed fund that, like Ultra-Small Company, is led by champion fund manager John Montgomery.
  • Hartford Small Cap Growth (FACAX) has lost to both the overall market and Morningstar's small growth category average since 2005. Ouch.
  • JP Morgan Small Cap Core (VSSCX) has eked out a small gain versus the S&P 500 since 2002. At least it sports a cheap 0.80% expense ratio.

Of these funds, Bridgeway Ultra-Small Company and its legendary returns interest me most. Here are its top five stock positions:

Company

Currently
Fetching

CAPS rating

US Global Investors (NASDAQ:GROW)

$19.88

****

Bolt Technology (AMEX:BTJ)

$36.04

****

Matrix Service (NASDAQ:MTRX)

$21.07

*****

CryoLife (NYSE:CRY)

$8.82

***

Hardinge (NASDAQ:HDNG)

$33.27

*****

Sources: Morningstar, Motley Fool CAPS

This strikes me as an excellent portfolio. Consider Bolt Technology, which, like Hidden Gems selection OYO Geospace (Nasdaq: OYOG  ) , aids in seismic exploration for energy. Its returns on equity and capital have skyrocketed over the past year.

What's more, Bolt, which was founded in 1960, operates in a well-defined and highly profitable niche. CAPS investor fthat explains:

This company is selling literally selling the cannons in the ongoing boom of seismic exploration. ... As long as [capital expenditures] in marine exploration increases at the current clip, the company should grow too.

Don't ask Montgomery if he agrees; he's a spreadsheet guy. Every investing decision Bridgeway makes is based on a complex mathematical formula built on many factors. But I suspect he's encouraged by Bolt's market position and business momentum.

For me, it often helps to see what superior stock pickers are buying. If that describes you, too, then consider Champion Funds. Shannon's picks are up 13% on their respective benchmarks as I write. Check out the entire portfolio with a free, no-risk trial.

That's all for now. See you back here next week, when we once again look at the funds behind the fantasy.


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