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

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The most popular stock among hedge funds had been Apple Inc. (NASDAQ:AAPL), and this was Robertson’s largest 13F position by market value at the end of the quarter as he owned just over 100,000 shares. Apple carries trailing and forward P/E multiples of 12 and 9, respectively, and posts a five-year PEG ratio of 0.5. It looks to us like the analyst consensus strongly favors high earnings growth, while investors seem to be assuming that Apple won’t be able to grow its bottom line at all going forward. We’d look for moderate growth at the company, so while we’re not as bullish as the sell-side we’d consider it a buy. Billionaire Dan Loeb’s Third Point was buying Apple last quarter (check out Loeb’s stock picks).

Robertson liked Ocwen Financial Corporation (NYSE:OCN), with his position of about 760,000 shares being 68% larger than it was at the beginning of July. Millennium Management, which is managed by billionaire Israel Englander, had also been buying the stock (see Englander’s favorite stocks). Ocwen is a savings and loan company whose stock price has more than doubled in the last year. The forward P/E multiple is 8, and the five-year PEG ratio is 0.6; it may be worth taking a closer look at the company.

$550 million market cap Chinese mapping and navigation company AutoNavi Holdings Ltd (NASDAQ:AMAP) had its earnings increase 9% last quarter versus a year earlier, but revenue rose at a greater rate and Wall Street analysts apparently expect growth to continue: at 17 times trailing earnings, the stock’s PEG ratio is 0.7. Robertson actually had the largest position of any hedge fund or notable investor in our database of 13F filings, at about 520,000 shares. It may be too small for hedge fund managers to notice (though it looks to have over $1 million in daily dollar volume) or investors may be avoiding Chinese companies.

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