• Multichannel News, Tuesday, March 3, 2009 10 AM

In the last three months of 2008, some of the biggest mutual funds were adding to their media positions, snapping up media shares at bargain prices, per SEC documents.

Four of the largest media mutual funds -- Capital Research Global Investors, Capital Guardian Trust, Janus Capital and FMR LLC -- bought a "significant" amount of stock in News Corp., Comcast and The Walt Disney Co., while reducing their stock positions in other cable operators, like Charter Communications and Cablevision Systems.

Media analyst David Joyce gives two reasons for the buying spree: a hunt for bargains and a need to participate in the end-of-the year market rally. He adds that the funds were also likely betting that some of these stocks would gain significant ground as the economy strengthens. "Large cap companies typically do best first when you come out of a recession," Joyce says.

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