BALTIMORE ( Stockpickr) -- Industrial stocks aren't exactly the sexiest names on the market. More often than not, they're big and lumbering, they have extremely cyclical businesses, and those businesses are usually boring. But that's exactly why funds have been buying industrial stocks with both hands in the last few months.
Even though industrials don't have the obvious excitement that you'd find in an IPO name or a hot tech play, these stocks are still pretty exciting performance-wise. As a sector, they've rallied 21.2% in the last six months, beating the S&P 500 by 6.4% over that same period.
A lot of that success has to do with the anxiety in the marketplace right now. As investors look for ways to shake off risk, the relatively staid businesses (and dividend payouts) of industrials look like a pretty good way to participate in the rally we've gotten. That's why the sector was one of only three that funds increased their positions in during the final quarter of 2012.