The Stocks the Funds Are Buying

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

To review, here's this week's list of contenders:

Company

Currently Fetching

CAPS Rating (out of 5)

N. American Galvanizing

$16.93

***

Genesis Energy

$33.37

***

Life Partners Holdings

$18.68

**

Metabolix

$25.81

**

Alto Palermo

$21.00

**

Albany Molecular Res.

$14.21

*

Winn-Dixie Stores

$30.00

*

Sources: Motley Fool CAPS, Yahoo! Finance.

My Foolish colleague Rich Smith singled out North American Galvanizing & Coatings, which protects iron and steel products. Let's follow his lead, checking Morningstar to see which funds are buying this stock:

  • Birmiwal Oasis (BIRMX) is a $22 million fund that's closed to new investors. It's outperformed the S&P 500 by -- get this -- an average of 24.7% annually over the past three years. Yowza.
  • Laudus Rosenberg U.S. Small Cap (USCIX) is also closed to new investors, but even when it was open, it was intended for institutional investors. The fund has lost to the index since 2005 and is lagging this year as well.
  • SA U.S. Small Company (SAUMX) has $303 million in assets and a very good long-term record, up 3% annually against the S&P 500 over the last five years.
  • DFA Tax-Managed U.S. Targeted Value (DTMVX) invests in small- and mid-cap stocks that trade somewhat close to their book value. It's a large fund, with $3.4 billion under management.

Of these, DFA Tax-Managed interests me most. Here are its top five stock positions:

Company

Currently Fetching

CAPS Rating (out of 5)

Belden CDT (NYSE:BDC)

$56.07

****

Steel Dynamics (NASDAQ:STLD)

$45.78

****

Reliance Steel & Aluminum (NYSE:RS)

$59.79

*****

Pilgrim's Pride (NYSE:PPC)

$35.49

***

Big Lots (NYSE:BIG)

$33.02

*

Sources: Motley Fool CAPS, Yahoo! Finance.

Overall, I'd call this a pretty strong portfolio. Listen to what CAPS All-Star NateWonder has to say about Reliance Steel:

Management is aggressively buying up competitors ... that fit into the company's profile; they will soon reach economies of scale. Also, their strength in supplying energy, aerospace, and non-residential construction will pad them from their industry's cyclical nature.

Manager Robert Deere's also got a stellar record, up almost six percentage points a year on the S&P 500 since 2002.

For me, it often helps to see what superior stock pickers are buying. If that describes you, too, then consider Motley Fool Champion Funds. Advisor Shannon Zimmerman's funds are up more than 14% on their respective benchmarks -- you can see for yourself with a free, no-risk trial.

Check back 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.

Fool contributor Tim Beyers, ranked 6,691 out of more than 29,200 in CAPS, didn't own shares in any of the companies mentioned in this article at the time of publication. Tim's portfolio holdings can be found at his Fool profile. His thoughts on funds, Foolishness, and investing in general may be found in his blog. 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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Related Tickers

9/19/2014 4:03 PM
BDC $70.02 Down -0.87 -1.23%
Belden, Inc. CAPS Rating: *****
PPC $32.09 Down -0.18 -0.56%
Pilgrim's Pride Co… CAPS Rating: **
RS $72.60 Down -1.05 -1.43%
Reliance Steel & A… CAPS Rating: *****
STLD $24.37 Down -0.59 -2.34%
Steel Dynamics, In… CAPS Rating: ****

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