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Funds Hoarding High-Volume Stocks

These investment vehicles love their heavily traded companies.

Some funds tend to hoard the big-volume stocks -- those that traded in much larger volumes than other company's shares.

Every stock mentioned in this article averaged a trading volume of more than $1 billion of market activity over a recent five-day period.

Five of the $1 billion-plus stocks are centered around the Internet and technology space.

Apple

(AAPL) - Get Apple Inc. (AAPL) Report

generated the highest dollar volume at $4.88 billion per day. Apple shares represented 13.95% of the C-rated

Berkshire Focus Fund

(BFOCX) - Get Berkshire Focus Report

at the end of the first quarter.

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

is the next-highest-volume tech company at a daily volume of nearly $1.47 billion. Microsoft is also the biggest holding of the D-rated

ProFunds-Technology UltraSector ProFund

(TEPIX) - Get ProFunds Tech UltraSector Inv Report

at 12.11% of assets as of March 31.

The second of four different ProFunds to make the cut this month is the

ProFunds-Semiconductor UltraSector Inv ProFund

(SMPIX) - Get ProFunds Semicond UltraSector Inv Report

. Nearly 35% of this E- rated fund is tied up in shares of

Intel

(INTC) - Get Intel Corporation (INTC) Report

.

At 9.96% of assets,

Cisco Systems

(CSCO) - Get Cisco Systems, Inc. Report

is tops at

Rydex Series-Internet Fund

(RYINX) - Get Rydex Internet A Report

, currently rated D+.

Qualcomm

(QCOM) - Get QUALCOMM Incorporated Report

shares are 7% of this same fund.

The next group of five companies are some of the biggest names in the financial arena.

Three of the most highly liquid shares are also the top three holdings of the E- rated

ProFunds-Bank UltraSector Inv ProFund

(BKPIX) - Get ProFunds Bnks UltraSect Inv Report

.

Citigroup

(C) - Get Citigroup Inc. Report

, at 12.54% concentration;

Bank of America

(BAC) - Get Bank of America Corp Report

, at 19.17%; and

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

at 16.34%, all regularly trade more than $1 billion in shares per day.

Trading just barely $1 billion worth of shares, brokerage firm

TheStreet Recommends

Lehman Brothers

(LEH)

is a top-five holding of

Legg Mason Partners Aggressive Growth Fund

(SHRAX) - Get ClearBridge Aggressive Growth A Report

. Insurer

American International Group

(AIG) - Get American International Group, Inc. Report

, at 8.6% of assets, slipped to the second-largest holding of the

Clipper Fund

(CFIMX) - Get Clipper Fund Report

.

The next two companies are very well known.

Anheuser-Busch

(BUD) - Get Anheuser-Busch InBev SA/NV Sponsored ADR Report

is the third-largest holding of the B+ rated

Boulder Growth & Income Fund

(BIF) - Get Boulder Growth & Income Fund Inc Report

.

The third most active at $1.86 billion average daily volume is

General Electric

(GE) - Get General Electric Company (GE) Report

, making up 21.26% of the A-rated

Vanguard Industrials Index Adm Fund

(VINAX) - Get Vanguard Industrials Index Adm Report

.

Finally, the price of a barrel of oil hit another record in May. Every well balanced portfolio should have some exposure to energy stocks like

Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report

,

Chevron

(CVX) - Get Chevron Corporation Report

and

ConocoPhillips

(COP) - Get ConocoPhillips Report

.

Exxon Mobil, with a 27.78% weighting, is the largest holding of the B-rated

ProFunds-Oil & Gas UltraSector Inv ProFund

(ENPIX) - Get ProFunds UltraSector Oil&Gas Inv Report

. Chevron and ConocoPhillips are the second and third largest holdings of the C+ rated

Vanguard Energy Index Adm Fund

(VENAX) - Get Vanguard Energy Index Adm Report

in slightly higher proportions than in the ProFund.

Important disclaimer: These stocks are so liquid that any of the above funds may already have liquidated their positions in these companies by the time you read this article.

For an explanation of our ratings,

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.

Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.