Apple Inc. (AAPL) and More High Upside Potential Stocks from Billionaire Julian Robertson

Page 1 of 2

TIGER MANAGEMENTJulian Robertson, formerly of Tiger Management, is a legend in the hedge fund community for his fund’s excellent performance (which made him a billionaire) and for Robertson’s own success in producing “Tiger Cub” hedge fund managers who have gone on to be successful themselves. We have gone through Robertson’s recent 13F filing (see the full list of his stock picks) looking for stocks with a high upside potential. We did this by considering each stock’s PEG ratio, which divides the P/E multiple by the expected growth rate of earnings; while earnings predictions of course aren’t always accurate, we think that this type of analysis can be useful in picking out stocks for further research. Here are five stocks Robertson had over $5 million invested in at the end of the third quarter and which have low PEG ratios:

One of Robertson’s picks was Sirius XM Radio Inc (NASDAQ:SIRI); he increased his holdings by 16% last quarter, to a total of 5.9 million shares. Sirius’s revenue was up 14% in the third quarter compared to the same period in 2011, though net income was down sharply. We’d also note that there is considerable short interest in the stock, so investors should not put too much emphasis on the PEG metric; a number of market players think it’s overvalued at these prices. Fellow billionaire Leon Cooperman’s Omega Advisors was another buyer during the third quarter (find more stocks Cooperman was buying).

American International Group, Inc. (NYSE:AIG) was the third most popular stock among hedge fund during the third quarter of the year (see the top ten) after not having made the list at all three months earlier. Robertson reported owning about 520,000 shares of the insurer. AIG trades at 10 times forward earnings estimates, and analysts expect net income to grow over the next several years, making it look appealing to value investors. We also like that it is trading at half the book value of its equity; even though we probably would value the stock at a discount to book value, it would be a smaller one than that.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!