FARO Technologies, Inc. (FARO)

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The Stocks the Funds Are Buying
http://www.fool.com/investing/mutual-funds/2008/07/08/the-stocks-the-funds-are-buying.aspx

Tim Beyers
July 8, 2008


We all know which stocks have made Wall Street's Buy List. What I want to know -- and I'm guessing you do, too -- is who's doing the buying. Which funds are buying Wall Street's most popular stocks ... and how does their judgment compare with that of our Motley Fool CAPS community?

Here's our latest group of contenders:

Company
Last closing price
CAPS rating (out of 5)

Jabil Circuit (NYSE: JBL)
$16.15
***

Hilb, Rogal & Hobbs
$43.80
**

Fuel Systems Solutions (Nasdaq: FSYS)
$28.37
**

HireRight
$17.40
**

MEDecision
$6.59
**


Sources: Motley Fool CAPS, Yahoo! Finance.

Jabil Circuit has plenty of fund fans, many of which are highly rated. But only two get five stars from ratings agency Morningstar: Vanguard Capital Opportunity (VHCOX) and Presidio (PRSDX).

Both are excellent funds. Vanguard's top trio -- Howard Schow, Joel Fried, and Theo Kolokotrones -- should have a place in the investing hall of fame for their two decades of 15% average annual returns leading Vanguard PRIMECAP (VPMCX).

But today I'm going with the kid: Kevin O'Boyle of the no-load Presidio fund, which opened for business in 2005. Yet O'Boyle isn't new at the investing game. He co-managed the market-beating Meridian Value (MVALX) fund with Rick Aster for close to a decade. Presidio applies similar principles but is small enough to pick up unloved small-caps, much as Bill Mann and Seth Jayson do for Motley Fool Hidden Gems subscribers.

Here are the top five stocks O'Boyle holds as of this writing:

Company
Last closing price
CAPS rating (out of 5)

Advance Auto Parts (NYSE: AAP)
$37.93
****

Avid Technology (Nasdaq: AVID)
$17.23
*

News Corp. (NYSE: NWS)
$14.63
***

Cardinal Health (NYSE: CAH)
$50.64
***

Faro Technologies (Nasdaq: FARO)
$23.77
****