Best Mutual Funds Scoop Up Apple, Nvidia, Microsoft As New Uptrend Begins

Evoking memories of Carl Sagan, the best mutual funds scooped up billions and billions of dollars in shares of top growth stocks like Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT) and Alphabet (GOOGL) in the latest list of new buys by top money managers. The money poured in just as a follow-through day flashed the start of a new uptrend on Jan. 31.

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AAPL stock and NVDA stock both made the billion-dollar club, joined by powertrain and motor manufacturer Regal Rexnord (RRX). Apple led the latest report, taking in an estimated $2.4 billion. The best mutual funds also bet $1.4 billion on Nvidia and over $1 billion in Regal Rexnord.

MSFT stock just missed a seat at the billion-dollar table, attracting an estimated $984 million. Bank of America (BAC), Intuit (INTU), AbbVie (ABBV) and Mastercard (MA) each took in over $900 million.

With Alphabet having just beat on earnings and announced a 20-for-1 stock split, GOOGL stock also made the list. The search and cloud computing giant took in $206 million from the best mutual funds.

Note: Be sure to check these Excel files, updated and published each month, to see all the stocks on the latest list of new buys and list of new sells by the best mutual funds.

Nvidia Leads Semiconductor Sector Stocks

Joining Advanced Micro Devices (AMD), Broadcom (AVGO), Qualcomm (QCOM), Applied Materials (AMAT) and several others, Nvidia leads semiconductor sector stocks regrouping after the recent stock market correction.

The outlook for semiconductor stocks in 2022 remains positive, but supply constraints are expected to cap growth this year. That said, the best mutual funds have also placed bets on KLA (KLAC), Kulicke & Soffa Industries (KLIC), ON Semiconductor (ON), Diodes (DIOD), Xilinx (XLNX), SiTime (SITM) and more.

BofA, Mastercard, Schwab Lead Financial Stocks On New Buys List

Including regional and superregional banks, 67 banks made the list of new buys by top funds. Plus, three institutions classified as money centers — Bank of America, Morgan Stanley (MS) and Barclays (BCS) — also made the cut.

Further showing the strength of this area in the market, 45 other firms from the financial sector also bankrolled a spot on the roster.

Morgan Stanley pulled in roughly $500 million from the best mutual funds. Signature Bank (SBNY) ($481 million) and Charles Schwab (SCHW) ($386 million) also garnered large investments.

Top Funds Pump Money Into 14 Oil & Gas Stocks

With the Energy Select Sector SPDR ETF (XLE) soaring to new heights, it’s not surprising that 14 oil and gas stocks make this list of new buys.

Coterra Energy (CTRA) leads the pack, taking in $824 million. Ovintiv (OVV), Cactus (WHD), EOG Resources (EOG), Diamondback Energy (FANG), Callon Petroleum (CPE) and Matador Resources (MTDR), among others, join Coterra.

More New Buys By The Best Mutual Funds

Showing the range and deep pockets of these leading money managers, Union Pacific (UNP), Deere (DE) and UnitedHealth (UNH) each attracted at least $500 million.

Along with UnitedHealth, Thermo Fisher Scientific (TMO), Pfizer (PFE) and West Pharmaceutical Services (WST) are among 27 names from the medical front on the list.

Dick’s Sporting Goods (DKS) and 2021 IPO Endeavor (EDR) also negotiated a mention.

View the full list of new buys by the best mutual funds.

Microsoft, 10 Other Long-Term Leaders Among The New Buys By Top Funds

Institutional investors tend to take a longer-term view of their holdings. So it’s no surprise that 11 stocks on the IBD Long-Term Leaders list have also secured a spot on the latest list of new buys by the best mutual funds.

Joining Microsoft and GOOGL stock on the list, you’ll also find Thermo Fisher Scientific, Pool (POOL), Intuit and West Pharma.

Software stocks Atlassian (TEAM) and Fortinet (FTNT) also join MSFT stock among the Long-Term Leaders and new buys by top funds list.

Build Your List Of Stocks To Watch As New Uptrend Takes Hold

With a nascent uptrend underway, keep an eye on stocks like Nvidia, Apple, Microsoft and Alphabet that have big institutional support.

This list of new buys by the best mutual funds is a good source for finding the best stocks to buy and watch. Also check IBD Stock Lists and Stock Checkup for the latest stock ratings.

For both stocks like Alphabet and Microsoft that have already reported, and those like Nvidia that are on tap, keep on eye on their behavior around their 50-day, 10-week and 21-day moving averages. On Friday, for example, Apple found support at its 50-day line, and Nvidia and Microsoft are both trading between their 50-day and 200-day moving averages.

That will help you spot areas of support and resistance, as well as pinpoint the best time to buy stocks and the right time to sell stocks.

How To Read Buys & Sells By The Best Mutual Funds

Ever wonder if managers of the best mutual funds know something you don’t? Would you like an early signal showing when institutional investors — especially the best ones — are getting in or out of certain stocks? New Buys Of Top-Performing Stock Funds and Top Funds’ Latest Sells provide just that. Use the PDF and Excel files to see when companies like Alphabet and Nvidia are in demand with large investors.

Updated each month, the New Buys list includes only new buys of the top 30% of stock funds ranked by 36-month performance. Companies are sorted by the highest combined Earnings Per Share (EPS) and Relative Price Strength (RS) Ratings. The number of top-performing funds that bought the stock in the latest reporting period is given.

As seen in the links above to the PDF and Excel files, the Total Mil$ Invested column shows the amount of money, in millions, the funds put into each stock. The column reflects both new positions and additions to existing ones. Prices, EPS and RS Ratings, and P/E are from the month-end close.

The Latest Sells list tallies the number of top-performing funds that were net sellers of each stock in the fund’s latest reporting period. Because some funds bought the same stocks sold by others, we also looked at the total number of buyers of each stock.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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