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TheStreet Open House

Should You Invest in the Government's 5 Favorite Stocks?

Stock quotes in this article: AAPL, XOM, LVLT, JNJ, WFC

BALTIMORE (Stockpickr) -- The government isn't exactly known for the prudent handling of money. Stories of $640 toilet seats and $37 screws come to mind. Budgeting and buying may not be Uncle Sam's strong suit, but investing is a different story.

>>5 Hated Earnings Stocks You Should Love

Government investments have been conspicuous losers in recent years, like the $10.5 billion lost on the bailout of General Motors (GM) or the now-you-see-it-now-you-don't profit made on American International Group (AIG). But while those deals have grabbed headlines, they weren't actually investments; they were bailouts.

In fact, governments' investment funds are some of the most ignored big-dollar professionally managed portfolios out there. And they're not relegated to the U.S. Federal government -- individual state trusts and foreign governments' sovereign wealth funds add up to some huge assets under management.

While we can't peek into all government investment accounts, the SEC's own rules can help us get the details on eight of the biggest with U.S.-domiciled accounts.

>>The Case for a Correction in Stocks

With $47.2 billion in stocks as of the most recent quarter, it makes sense to pay attention to these government funds' favorite stocks in 2014. To do that, we'll use 13F filings.

Institutional investors with more than $100 million in assets are required to file a 13F -- a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies to governments, any professional investors who manage more than that $100 million watermark are required to file a 13F.

>>Invest Like a Venture Capitalist With These 5 Stocks

Today, well focus on five stocks government-managed funds bought most during the last quarter.

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