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If you are of the camp that believes mutual funds buy at the highs and sell at the lows, this may be an interesting starting point for your own analysis...

To construct this list we looked for stocks with the following characteristics:

  • Market cap above $300M
  • Traded at 52-week high during recent sessions
  • Experienced significant mutual fund buying during the quarter

click for expanded images

We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Considering this information and your opinion about the markets, which of these stocks is most likely to lose momentum and head lower?

1. Silicon Graphics International Corp. (NASDAQ:SGI): Diversified Computer Systems Industry. Market cap of $621.05M. On a net basis, mutual funds purchased 3.3M shares over the current quarter - which is equivalent to 11.67% of the floating shares. The stock has had a couple of great days, gaining 13.08% over the last week.

2. RTI International Metals, Inc. (NYSE:RTI): Industrial Metals & Minerals Industry. Market cap of $1.03B. On a net basis, mutual funds purchased 3.2M shares over the current quarter - which is equivalent to 10.81% of the floating shares. The stock is a short squeeze candidate, with a short float at 12.73% (equivalent to 8.27 days of average volume).

3. Sauer-Danfoss Inc. (NYSE:SHS): Diversified Machinery Industry. Market cap of $2.66B. On a net basis, mutual funds purchased 641.0K shares over the current quarter - which is equivalent to 5.67% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.03). Might be undervalued at current levels, with a PEG ratio at 0.89, and P/FCF ratio at 10.96.

4. SouFun Holdings Ltd. (NYSE:SFUN): Internet Information Providers Industry. Market cap of $1.73B. On a net basis, mutual funds purchased 249.1K shares over the current quarter - which is equivalent to 5.46% of the floating shares. The stock is a short squeeze candidate, with a short float at 24.07% (equivalent to 6.66 days of average volume).

5. Virgin Media, Inc. (NASDAQ:VMED): CATV Systems Industry. Market cap of $9.95B. On a net basis, mutual funds purchased 14.3M shares over the current quarter - which is equivalent to 4.75% of the floating shares. The stock is a short squeeze candidate, with a short float at 8.95% (equivalent to 7. days of average volume).

6. Electronic Arts Inc. (ERTS): Multimedia & Graphics Software Industry. Market cap of $6.66B. On a net basis, mutual funds purchased 15.8M shares over the current quarter - which is equivalent to 4.75% of the floating shares. Exhibiting strong upside momentum--currently trading 7.16% above its SMA20, 10.89% above its SMA50, and 26.67% above its SMA200. The stock has gained 3.21% over the last year.

7. HFF Inc. (NYSE:HF): Mortgage Investment Industry. Market cap of $563.85M. On a net basis, mutual funds purchased 1.5M shares over the current quarter - which is equivalent to 4.64% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.43).

8. Polypore International Inc. (NYSE:PPO): Industrial Equipment & Components Industry. Market cap of $2.53B. On a net basis, mutual funds purchased 2.1M shares over the current quarter - which is equivalent to 4.6% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.23). Exhibiting strong upside momentum--currently trading 15.62% above its SMA20, 17.55% above its SMA50, and 60.58% above its SMA200. The stock has gained 228.41% over the last year.

9. Barnes Group Inc. (NYSE:B): Industrial Equipment & Components Industry. Market cap of $1.33B. On a net basis, mutual funds purchased 2.2M shares over the current quarter - which is equivalent to 4.54% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.06). The stock is a short squeeze candidate, with a short float at 11.19% (equivalent to 9.55 days of average volume).

10. Six Flags Entertainment Corp. (NYSE:SIX): General Entertainment Industry. Market cap of $2.0B. On a net basis, mutual funds purchased 1.2M shares over the current quarter - which is equivalent to 4.35% of the floating shares.

*Mutual fund flows sourced from Fidelity, other relevant data sourced from Finviz.

Source: Contrarian Ideas: 10 Stocks Reaching New Highs on Mutual Fund Buying