Market volatility revved into high gear in January, making investors queasy from all the ups and downs.
Stocks ended up a bust in the first month of the year on the backs of the oil slump and weak corporate earnings. The Nasdaq plunged 7.9% in January, while the S&P 500 sank 5.1%.
Managers of the nation's best-performing funds the past three months have stepped on the brakes, slowing their stock buys to just a selected few top-rated stocks that have defied gravity.
Household tech names, such as Facebook (FB), Alphabet (GOOGL), Verizon Communications (VZ) and Equinix (EQIX) have seen buying action among leading funds in their latest reporting periods.
Click Here To See A List Of New Buys Of Top Mutual Funds
A handful of property REITs, such as Stor Capital (STOR), Mid America Apartment Communities (MAA), Sovran Self Storage (SSS), were solid performers in recent months and also favored by top-performing funds. The Finance-Property REIT group was ranked No. 9 among 197 industries as of Wednesday.
Top funds also added defensive utilities stocks Atmos Energy (ATO), PNM Resources (PNM), ITC Holding (ITC), American Water Works (AWK) and Black Hills (BKH).
IBD spotted five leading funds buying Edward Lifesciences (EW), investing an estimated $2.4 million in their latest reporting periods. The $103 billion Fidelity Contrafund (FCNTX) added shares to its portfolio.
The Irvine, Calif.-based firm makes and markets medical devices to treat heart disease. Edward reported fourth-quarter earnings results of 63 cents a share, up 19% from a year earlier and beating analysts' estimates of 59 cents. Revenue rose 8.6% to $671 million.
Its fourth-quarter earnings growth was driven by high demand for Sapien 3 and Sapien XT heart valves, which are delivered through a procedure called transcatheter aortic valve replacement therapy (TAVR). Its Critical Care products group, which includes hemodynamic monitoring devices, also performed well globally in the fourth quarter.
Edward's stock held steady during most the stock market's sell-off in January. The stock cleared a flat two-month base on Wednesday on its upbeat fourth-quarter earnings.
Sells
The nation's leading funds have been unloading Lilly Eli & Co. (LLY) in the latest reporting period. There were 16 net-selling funds. Positions in other drugmakers Zoetis (ZTS) and Baxalta (BXLT) were also slashed.
