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:

Sources: Motley Fool CAPS, Yahoo! Finance.

Normally I'd give GreenHunter Energy top billing here, but because YRC Worldwide is a Motley Fool Hidden Gems Pay Dirt pick, I want to see what funds are following in our team's stock-picking footsteps.

Two get five stars from ratings agency Morningstar, including the Fidelity Balanced (FBALX) fund, which last appeared in this column in May. Of the top five funds buying shares of YRC, Fidelity runs four.

Growth grabber Fidelity OTC (FOCPX) -- whose top holdings include Google and Apple (NASDAQ:AAPL) -- is the most interesting but also looks dangerously like a one-hit wonder: OTC returned 26% in 2007 to outperform the category average by more than 12 percentage points. So I click on the tab for "top fund owners" of YRC and, thankfully, find what I'm looking for: Fidelity Low-Priced Stock (FLPSX), a no-load winner that's run by superstar investor Joel Tillinghast.

Here are Tillinghast's top five holdings as of this writing:

Sources: Morningstar, Motley Fool CAPS.

It warms my heart to see Oracle in his top five; I've owned shares for years and still believe it to be a bargain.

I'm attracted to free cash flow. Oracle has produced more than $7 billion of it over the trailing 12 months, thanks in part to astounding growth. Revenue improved by 24% and earnings grew 27% in the latest quarter.

More important than any of these numbers, though, is license revenue growth. Oracle sold 23% more database and middleware software in its fiscal fourth quarter than it did the year before. Acquiring BEA earlier in the year may have aided those numbers, but probably not enough to drop organic growth to the single digits. And yet Oracle -- with a forward P/E of just over 12 -- is valued as if it's exactly that sort of slow grower.

But that's my take. Would you own Oracle, or any of the stocks in the Fidelity Low-Priced Stock fund, at today's prices? Log into CAPS today and let us know what you think. It's 100% free to participate.