The Stocks the Funds Are Buying

We all know which stocks have 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 (out of 5)

Northern Orion Resources

$6.18

*****

China Southern Airlines

$80.42

***

Sinovac Biotech

$5.29

****

China Precision Steel

$9.40

***

United Retail Group

$13.60

***

Sources: Motley Fool CAPS, Yahoo! Finance

List-topper Northern Orion, a Canadian copper and gold miner, has an intriguing fund following. Here's a sampling:

  • U.S. Global Investors Global Resources (PSPFX), a remarkable no-load performer that has returned more than 43% annually over the past five years. It's one of many winners for U.S. Global Investors (Nasdaq: GROW  ) .
  • DFA International Small Cap Value (DISVX), which has beaten the benchmark MSCI EAFE every year since 2003.
  • The Boston Co. Small Cap Tax-Sensitive (SDCEX), a closed fund that has lagged its Morningstar Small Growth category peers over the past five years.
  • The Boston Co. Small Cap Growth (SSETX), a sister fund to Tax-Sensitive, which unfortunately hasn't performed much better.
  • Dreyfus Founders Discovery (FDISX), which has routinely trailed its Morningstar category peers, yet charges a whopping 1.52% expense ratio. Yuck.

Of these funds, U.S. Global Investors Global Resources interests me most. Here are its top five stock positions:

Company

Currently Fetching

CAPS Rating

McDermott International (NYSE:MDR)

$53.95

*****

Schlumberger (NYSE:SLB)

$104.39

*****

Noble (NYSE:NE)

$49.16

*****

Marathon Oil (NYSE:MRO)

$57.47

****

White Nile

$1.51

Not rated

Sources: Morningstar, Motley Fool CAPS

This strikes me as an excellent portfolio. Consider McDermott, an energy services firm that boasts stratospheric returns on capital. CAPS investors such as FastMoneyFool see no end to those gains:

This international player is involved in nuclear power generation systems construction and repair. It is also heavily involved with offshore oil and gas construction and engineering. Government contracts also add to a steady earnings stream. The financials are strong, and these business segments are likely to expand in the future.

I'll say. With oil now far more than $80 a barrel, it's a likely bet that energy-services firms will see more, and more lucrative, contracts. And if nuclear power sees the long-awaited renaissance some are expecting, McDermott would profit.

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 look once again at the funds behind the fantasy.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 537706, ~/Articles/ArticleHandler.aspx, 7/29/2014 3:24:52 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement