The Stocks the Funds Are Buying

We all know who's on Wall Street's Wish List. What I want to know -- and I'm guessing you do, too -- is who's doing the wishing. Which funds are buying the week's top stocks in our Motley Fool CAPS investor-intelligence database?

Here's our latest group of contenders:

Company

Currently
Fetching

CAPS Rating (Out of 5)

Omniture

$22.90

****

TASER International

$16.16

***

Cholestech

$21.92

***

General Motors

$36.82

*

Sources: Motley Fool CAPS, Yahoo! Finance.

List-topper Omniture, which increases the effectiveness of websites, has plenty of fund fans, including:

  • Fidelity Growth Company (FDGRX), which, sadly, is closed to new investors. Why is that sad? Manager Steven Wymer, now in his 11th year, has outdistanced the S&P 500 by more than 2 percentage points annually over the past decade.
  • Fidelity Aggressive Growth (FDEGX), a cheap, no-load grower that lost badly to the market last year but is up on the S&P by nearly 7 percentage points so far in 2007.
  • Franklin Small-Mid Cap Growth A (FRSGX), which would be a wonderful fund if not for its ugly 5.75% front-end load.
  • Alger SmallCap Growth B (ALSCX), which has a lousy 10-year record and a miserable 5.00% back-end load. But it's not all bad. If you're willing to suffer the fees, manager Jill Greenwald has proved to be a top stock picker, up more than 6 percentage points a year on the S&P since 2002.

Of these funds, it's Fidelity Growth Company that interests me most, and not just because I'm a member of the Rule Breakers team. Here are its top five stock positions:

Company

Currently
Fetching

CAPS Rating

Google (NASDAQ:GOOG)

$544.47

**

Celgene (NASDAQ:CELG)

$59.28

****

Nintendo (OTC BB: NTDOY.PK)

$51.00

*****

Network Appliance (NASDAQ:NTAP)

$29.25

***

Wal-Mart (NYSE:WMT)

$47.68

**

Sources: Morningstar, Motley Fool CAPS.

This strikes me as a high-risk, high-reward portfolio -- just my style. Consider Network Appliance, which I've singled out as a potential Rule Breaker. CAPS investor IgrommetI appears to agree:

Calling them a "storage" company is misleading. They are the defacto "server" company out there. Their channel is very strong at understanding and selling solutions around them. Their customers rave about their products, and they are a good company with veteran Silicon Valley leadership. ... PEG is in the .90 range. They have tons of cash, almost no debt, and throw off a good deal of cash each quarter. I just don't see the downside.

Given Wymer's stellar long-term record, I, too, am having a hard time seeing the downside.

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.

Still hungry for stock ideas? Stop by CAPS and get your fill, 100% free.

TASER International is a Rule Breakers recommendation. Wal-Mart is an Inside Value pick. Nintendo and Omniture are Stock Advisor selections. You can test out any of our newsletter services free for 30 days, with no risk.

Fool contributor Tim Beyers, who is ranked 2,538 out of more than 60,000 participants in CAPS, didn't own shares in any of the companies mentioned in this article at the time of publication. Find Tim's portfolio here and his thoughts on funds here. The Motley Fool's disclosure policy has recurring fantasies about a desert island, margaritas, and a plate of burritos. Go figure.


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