Apple Inc. (AAPL), Clearwire Corporation (CLWR): We’re Watching This Hedge Fund

Key Corp. (NYSE:KEY) is the third-largest holding in Sirios Capital’s equity portfolio, worth 6.27% of its total holdings. The bank holding company, which presently trades at a P/E of 11.32, is paying a 2.01% dividend, which is comparable to competitors, such as Wells Fargo. The company’s return on equity (8.44%) outpaces the industry average (8.03%), and the stock’s price is up more than 20% over the past year. Key Bank is expected to post an 11.63% EPS growth rate next year.

The second-largest holding in the Sirios Capital equity portfolio is Clearwire Corporation (NASDAQ:CLWR). The wireless broadband service provider comprises 6.64% of John Brennan’s 13F-reported stock holdings, although he has decreased his position substantially, as of late. However, heading into 2013, a total of 32 of the hedge funds we track were long in this stock, a change of 45% from one quarter earlier. The 4G-network operator’s stock is up 39% over the past year and is presently trading with expectations of an EPS growth rate of 62.48% this year.

Comerica Incorporated (NYSE:CMA), Brennan’s favorite stock, comprises a whopping 8% of the Sirios equity portfolio. Recently, Brennan increased his long position in the stock by 2%. The financial services company’s stock is up nearly 12% over the past year. Further, earnings per share growth this year is expected to come close to 30%, with five-year averages falling in the 6-7% range. Add to this, a healthy profit margin (20.46%) and an industry-pacing ROE (7.46% to 8.03%), and it’s not surprising that Brennan is bullish on the stock.

Obviously, the financial services industry is immensely sensitive to economic cycles. Thus, given the present climate, it’s understandable that investors may not be too eager to take a long position in a stock like Comerica. However, it appears to be a strong regional bank, which is appropriately valued, and the valuation argument is one that stretches back to Apple, Clearwire Corporation (NASDAQ:CLWR), Whirlpool, and the remaining members of this hedgie’s top five. If pressed to choose one out of this group, we’d go with Apple Inc. (NASDAQ:AAPL), as the bargain-bin multiples and analyst sentiment are a combination that’s too attractive to ignore.

Disclosure: none

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

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

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!