$3 Billion Hedge Fund Valiant Capital’s Stock Picks for 2013

Hansen and his team slightly added to their position in Google Inc (NASDAQ:GOOG), closing the year with about 120,000 shares. Last quarter Google Inc (NASDAQ:GOOG)’s revenues were up 36% but net income was only up 7%; this reflects the addition of Motorola Mobility Holdings, which has hurt the company’s margins and caused a hit to earnings. The trailing P/E here is now 24. Billionaire and Tiger Cub Stephen Mandel’s Lone Pine Capital- Hansen himself previously worked for Tiger Cub John Griffin- most recently reported owning over 1 million shares of Google Inc (NASDAQ:GOOG) (check out Mandel’s stock picks).

Valiant owned 1.4 million shares of Liberty Global Inc. (NASDAQ:LBTYA), the $19 billion market cap Internet, TV, and phone company. This is about even with its position from three months earlier. Coatue Management, which is run by Philippe Laffont, added shares to its own position in Liberty Global during Q3 (find Laffont’s favorite stocks). Liberty Global’s stock price is up 47% in the last year, a rise which has resulted in some high earnings multiples.

Investment brokerage Charles Schwab Corp (NYSE:SCHW) rounded out the fund’s top five picks as Valiant increased its holdings from 4.1 million shares to almost 5 million. Glenn Greenberg’s Brave Warrior Capital initiated a position in Charles Schwab between July and September (research more stocks Brave Warrior was buying). In the fourth quarter of 2012, earnings were up 29% versus a year earlier on a 9% revenue increase and higher margins. The stock trades at trailing and forward P/E multiples of 24 and 19, respectively, suggesting that the market is pricing in similar growth rates on the bottom line going forward. It might be better to wait and see if the company continues its strong performance.

Disclosure: I own no shares of any stocks mentioned in this article.