'Mad Money' Spotlight: American Growth Fund

Going with a winner is always easy and, as Jim Cramer said during Wednesday night's "Mad Money" broadcast, the American Funds Growth Fund of America(AGTHX) is certainly that.

Cramer said the fund is up 9.5% and trouncing others pretty easily, but he talked up the fund not for its performance, but for its picks. He said AGTHX's success should lead to an influx of cash, and to look for management to reroute that cash right back into its holdings.

For "Mad Money" watchers, that means piggy-backing on the fund's contents and not necessarily the fund itself. Based on the fund positions, Cramer discussed the biggest stocks in AGTHX's tech heavy coffers:

Google(GOOG) is AGTHX's biggest holding, owning a $4 billion stake. Cramer said the fund may even double its position, which will only move the stock, regardless of Google's size. After an early morning surge, Google was down slightly in afternoon trading, coming in at $396.80 or 38 cents in the red.

Oracle(ORCL), AGTHX's second biggest position, was down 49 cents, losing 2.6 percent by midday.

Number three on the fund's holding list is Cisco(CSCO). AGTHX's holding of the San Jose-based IP networking giant comes in at $2.57 billion, but the stock was down almost 3% by midday at $18.09. But Cramer said the stock has upside around $23 or $24. This comes after Cisco's recent movements into the blade-server market, sparking a new data-center tussle worth keeping an eye on.

Apple(AAPL), the fund's fourth largest position, was changing hands at $123.80, off $2.07 since yesterday's close. Apple, of course, is readying for the hammer to drop in the smart-phone war. The Palm(PALM) Pre arrives on June 6 and has had iPhone-trouncing buzz around it since its unveiling at the Consumer Electronics Show in January. Cramer believes AGTHX could triple its position in the company.

As the fund's fifth largest holding, Microsoft(MSFT) does not have a fan in Cramer. He doesn't suggest buying it, but the tech-heavy nature of the fund is worth noting here. Shares were trading at $19.65, down 3.6%. The software giant is a customer of Austin, Texas-based SolarWinds(SWI), a networking company which yesterday became the sixth company to price its IPO this year.

>To order reprints of this article, click here: Reprints