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
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

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

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands 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!