Cramer's 'Mad Money' Recap: May 20

Click here for an archive of Jim Cramer's Mad Money recaps.

---

What happens when a single mutual fund out performs all the rest? Jim Cramer told viewers of his "Mad Money" TV show Wednesday that the answer is easy: more people invest in it.

He said that if investors follow that money, they'll know exactly which stocks are poised to rocket higher.

Year to date, the American Growth Fund Of America (AGTHX Quote) is up a stellar 9.5%, beating all other mutual funds handedly.

Cramer said when a fund it this red hot, it's inevitable that new investors will begin pouring money into it. And once that money arrives, fund managers will often buy more of what's working and more of what they already own.

In the case of the American Growth Fund, the No. 1 holding is search giant Google (GOOG Quote). Cramer said the fund could easily double its $4 billion position in Google, as advertising dollars continue to migrate from print to online venues faster than anyone thought possible. He called Google "the cheapest growth stock I know."

American Growth Fund's second largest holding is Oracle (ORCL Quote), another stock Cramer endorsed without hesitation. Oracle enjoys a 13% growth rate and trades at just 13 times its earnings, said Cramer. He said the American Growth Fund could double its position here as well.

Third on the list is another tech name and Cramer favorite: Cisco (CSCO Quote), a stock which Cramer owns for his charitable trust, Action Alerts PLUS. Cisco is nine points off its high, despite better-than-expected visibility going forward. Cramer said Cisco could see $23 to $24 a share.