REIT, Medical Stocks Lead New Buys By Best Mutual Funds
As Wall Street entered a bear market in Q4, the amount of money being invested by the best mutual funds shrank considerably. But they focused their pared-back investments in REIT stocks, as well as medical stocks, such as Edwards Lifesciences (EW), Biogen (BIIB) and Amgen (AMGN).
Real estate investment trusts Extra Space Storage (EXR), Store Capital (STOR) and CubeSmart (CUBE) joined 10 other REIT stocks on the list. Hannon Armstrong Sustainable Infrastructure (HASI) led not just its fellow REIT stocks, but all of the new buys by the best mutual funds with an estimated $53.7 million in new investments.
Among medical stocks, biotechs and outpatient and managed care companies led. In addition to Amgen and Biogen, Regeneron Pharmaceuticals (REGN) and Innoviva (INVA) were also among the biotech stocks being bought by top funds over the last three months.
Hospital operators and managed care giants HCA Healthcare (HCA), Anthem (ANTM) and Molina Healthcare (MOH) joined 22 other medical stocks that made the cut.
The REIT stocks on the list pay dividends ranging from 2.3% to 6.3% on an annualized basis. Hannon Armstrong (6.5%) and Medical Properties Trust (MPW) (6.2%) have the biggest yields. They’re followed by Store Capital (4.8%), Simon Property Group (SPG) (4.8%), and CubeSmart (4.5%).
In addition to Store Capital and Medical Properties Trust, 12 other IBD 50 stocks made the list. Among them are medical stocks Edwards Lifesciences, Regeneron, Illumina (ILMN), and Horizon Pharma (HZNP).
Five of the new buys by the best mutual funds are also featured in the IBD Big Cap 20, including Salesforce.com (CRM), Regeneron and Edwards Lifesciences. Salesforce is also on Sector Leaders, IBD’s most stringent screen.
Stocks To Watch In Next Uptrend
As you would expect in a bear market, many of the names on this list pulled back in the fourth quarter. But the silver lining of market downturns is that they set up new buying opportunities in the next bull cycle.