Over the past 30 years, Jim Cramer noticed the same thing tends to happen at around this time of year — many hedge fund managers continually buy momentum stocks from the start of the fourth quarter through the year's end.
"The growth-oriented fund managers will keep buying their best-performing momentum stocks practically non-stop for the next three months, " Cramer said. "And these guys will pay pretty much any price because they can justify stratospheric valuations based on the earnings in the out-years, meaning how much money these fast growers can make down the road in 2015 or 2016."
In Cramer's experience, anticipating which stocks may be "anointed by Wall Street as winners in the fourth quarter" is typically a winning trade. When he ran a hedge fund, he often bought the stocks he thought might be bought en masse during the last quarter of the year. He put together a list of stocks he thinks are likely to be the biggest winners this fourth quarter.