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 ... and how does their judgment compare with that of our Motley Fool CAPS community?

Here's our latest buy list:

Company

Last Closing Price

CAPS Rating (5 max)

Innophos Holdings (Nasdaq: IPHS  )

$37.90

***

Fuel Systems Solutions

$52.71

**

Susser Holdings

$19.03

***

Micromet

$6.49

*

UnionBanCal (NYSE: UB  )

$73.70

*

Sources: Motley Fool CAPS, Yahoo! Finance.

None of the funds buying phosphates producer Innophos earn five stars from ratings agency Morningstar. But one, Wells Fargo Advantage Discovery (STDIX), is a four-star performer that intrigues me. Allow me to introduce you.

Advantage Discovery is a mid-cap growth fund with just $406 million in assets. But it's also a no-load winner. Managers Thomas Pence and Jim Leach have been working together since October 2003, and over the past five years, the pair have outperformed category peers by more than three percentage points annually. They're also well up on both the S&P 500 and peers year to date; a year that's been very tough on growth stocks.

Here's a look at the top five stocks Pence and Leach hold as of this writing:

Company

Last Closing Price

CAPS Rating (5 max)

Equinix (Nasdaq: EQIX  )

$80.26

*

NII Holdings (Nasdaq: NIHD  )

$53.22

*****

SBA Communications (Nasdaq: SBAC  )

$35.14

**

Activision Blizzard (Nasdaq: ATVI  )

$33.36

*****

Newfield Exploration (NYSE: NFX  )

$45.56

***

Sources: Morningstar, Motley Fool CAPS.

Of these, Activision Blizzard is my favorite because of the scuttlebutt among gamers. Responding to concerns from one CAPS member that Activision might be bad for Blizzard, All-Star MoltenTofu came up with this impassioned response:

Activision, drag blizzard down? That's borderline offensive. Activision has existed since the Atari - well before Blizzard, with franchises such as CoD (did you play CoD4?), Battlezone, SoF, three out of the four quakes, and the less violent/niche games: Tony Hawk, oh yeah: Guitar Hero and the ensuing idiocy (but fantastically selling idiocy). They've got their fingers in every pie; in addition to quake they did Doom 3. They've done work with Valve AND LucasArts. With Valve it was Steam (which means on-the-ground experience with the social networking/online content aspect which is getting big in the business), and with LucasArts (as well as others) they've done the movie ports before.

Activision Blizzard, in other words, is a hit factory. It also has a sterling balance sheet and a history of producing excess cash flow, both good signs in a highly competitive market.

But that's my take. I'm more interested in what you think. Would you own shares of Activision Blizzard or any of the stocks in the Wells Fargo Advantage Discovery fund, at today's prices? Log into CAPS today and let us know what you think. It's 100% free to participate.

If you like seeing what superior stock pickers are buying, consider Motley Fool Champion Funds. Its collection of market beaters is up 18 percentage points on their respective benchmarks as of this writing. Examine the entire portfolio with a free, no-risk trial.

Activision Blizzard is a Stock Advisor selection. Innophos Holdings is a former Motley Fool Hidden Gems recommendation.

Fool contributor Tim Beyers, who is ranked 18,256 out of more than 115,000 participants in CAPS, didn't own shares in any of the companies mentioned in this article at the time of publication. Get access to all of his Foolish writings here. The Fool's disclosure policy has recurring fantasies about a desert island, margaritas, and a plate of burritos.


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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 717725, ~/Articles/ArticleHandler.aspx, 8/27/2014 7:00:50 AM

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