Apple Inc. (AAPL) Is Billionaire David Shaw’s Top Stock Pick

Page 1 of 2

We have been going through hedge fund 13F filings from the fourth quarter of the year. One use of this information is by applying investing strategies which have worked in the past; for example, the most popular small cap stocks among hedge funds have produced an average excess return of 18 percentage points per year (learn more about our small cap strategy) and other techniques are likely possible as well. 13Fs can also be used to see what specific investors are doing in the markets. D.E. Shaw is a large hedge fund (total assets under management are over $25 billion) founded in 1988 and named after founder David Shaw. Shaw has since become a billionaire due to the combination of his fund’s size and success. Here are D.E. Shaw’s five largest holdings by market value at the end of 2012 according to its 13F filing (or check out more of Shaw’s stock picks):

David Shaw

The fund actually added slightly to its position in Apple Inc. (NASDAQ:AAPL), closing December with a total of 1.5 million shares in its portfolio. Apple Inc. (NASDAQ:AAPL) is no longer the most popular stock among hedge funds, according to our database; that status now belongs to American International Group Inc (NYSE:AIG). See more of the most popular stocks. Down 17% in the last year, Apple Inc. (NASDAQ:AAPL) now trades at 10 times trailing earnings as the market consensus becomes that earnings will fall due to lower margins. Wall Street analysts remain highly bullish, with their growth projections implying a five-year PEG ratio of 0.5, and calls are intensifying for management to better use its cash.

D.E. Shaw was also buying shares of Berkshire Hathaway Inc. (NYSE:BRK.B) in the fourth quarter of 2012, and owned 7.6 million Class B shares at the beginning of January. Warren Buffett’s holding company (find Buffett’s favorite stocks) is valued at a premium to the book value of its equity- the P/B ratio is 1.3- as investors express confidence both in Buffett and in his successors. Berkshire’s stock price has done well over the last year, outperforming the S&P 500.

Read on for more of D.E. Shaw’s top picks:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!