Well, it was bound to happen eventually. The generation of the hippie and the yuppie is about to earn itself yet another moniker: retiree. With the Baby Boomers trading in their AMEXes for AARP cards, the whole country's about to feel the economic impact -- and it's a lot more than eating the cost of their senior citizens' discount.

Baby Boomers between the ages of 44 and 62 make up about a quarter of the U.S. population, with another 12.7% over the age of 65. Together, they comprise the single largest demographic group in the U.S.

What's more, the Boomers are richer than any group in history, controlling 50% of all U.S. discretionary income, and accounting for 75% of drug spending.

Simply put, even in retirement, the Boomers will be a spending power to be reckoned with.

Which is why institutional investors like hedge funds and big money managers are so keen to invest in companies with an exposure to this profitable trend.

Wondering which Baby Boomer stock picks are being chased by the smart money?

To compile the list below, we created a universe of Baby Boomer stock picks sourced from publications like CNBC, TheStreet, JPMorgan, and Barron's. We then narrowed down the list to 10 stocks that have seen significant institutional inflows over the past three months.

The complete universe of Baby Boomer stock picks can be accessed here. Here are the picks from that list favored by institutional investors:

Company

Shares Held: Inst. Investors

Shares Held 3 Months Ago: Inst. Investors

% Change

Talbots (NYSE: TLB)

82,815,928

48,375,985

71.19%

Bio-Rad Laboratories (NYSE: BIO)

83,470

74,450

12.12%

Stericycle (Nasdaq: SRCL)

88,229,823

84,299,383

4.66%

American Medical Systems Holdings (Nasdaq: AMMD)

93,238,837

89,502,829

4.17%

Hcp (NYSE: HCP)

263,166,596

253,639,426

3.76%

Starbucks (Nasdaq: SBUX)

562,214,701

542,773,975

3.58%

Cepheid (Nasdaq: CPHD)

57,459,884

55,589,803

3.36%

Discovery Communications (Nasdaq: DISCA)

144,106,958

139,598,497

3.23%

Estee Lauder (NYSE: EL)

112,269,662

108,792,187

3.20%

Beckman Coulter (NYSE: BEC)

63,963,978

62,023,261

3.13%

Interactive Chart: Compare market cap and analyst ratings for all the stocks mentioned above. To customize this tool on a larger view, click here.


Kapitall's Eben Esterhuizen and Alicia Sellitti do not own any of the stocks listed.