The (Fund) Stakes Are High for These 15 Stocks
When you're lying on an operating table or about to jump out of a plane with a group of skydivers, it's comforting to be surrounded by professionals. Does the same hold true for stock investing?
Large-scale institutional ownership of a company has pluses and minuses. It represents something of a seal of approval by professionals, but there's a downside, too: Institutions tend to buy stock in big hunks, which can send prices up in a hurry, but when the big boys sell, prices can sink just as fast.
Here's a list of the 15 large-cap stocks in which fund managers have gulped down more than 35% of the company's shares outstanding. Whether you see it as good or bad, it's worth digesting. Bon appetit. (Of course, this list doesn't include companies that have a small portion -- less than half, say -- of their stock in public hands, since most of the ownership is private.)
The 15 large-cap stocks where fund managers have taken the biggest stake.
|Stock||Industry||Fund Ownership (%)||P/E Multiple||YTD Return|
|Safeway (SWY)||Grocery Stores||48%||21.9||26%|
|Maxim Integrated Products (MXIM)||Semiconductors||46||84.2||40|
|Teradyne (TER)||Testing Devices||39||29.8||-4|
|Sanmina (SANM)||Circuit Boards||39||71.7||86|
|United Health Group (UNH)||HMOs||38||24.1||54|
|Clear Channel Communications (CCU)||Radio Stations||36||N/A||-14.6|
|Cardinal Health (CAH)||Medical Goods||35||28.6||53.5|
|Guidant (GDT)||Medical Equipment||35||38.4||19.9|
|Waste Management (WMI)||Waste Management||35||11.7||8.7|
|Baker Hughes (BHI)||Oil/Gas Services||35||182||64.4|
|Omnicom Group (OMC)||Advertising||35||38.6||-15|
|Univision Communications (UVN)||Broadcast TV||35||135||21.6|
|Linear Technology (LLTC)||Semiconductors||35||62.8||54.4|
|Source: Morningstar and Baseline.|
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