Apple Inc. (AAPL) is Maverick Capital’s Top Pick

Page 1 of 2

Apple Inc. (NASDAQ:AAPL) remains Maverick Capital’s top stock pick, making up 4.7% of the hedge fund’s 13F portfolio. Manager Lee Ainslie graduated from UNC and joined Julian Robertson’s Tiger Management in 1990. In 1993, Ainslie founded Maverick Capital and now runs a solid long/short equity strategy, not trading bonds, currencies, commodities or options.

After reviewing Maverick’s recent 13F with the SEC – which are filings that are useful for individual investors to track as they reveal the holdings of hedge funds and other notable money managers – we have identified the fund’s top five holdings (check out all of Maverick’s bullish bets).

MAVERICK CAPITAL

Sitting in Maverick’s No. 1 slot, Apple Inc. (NASDAQ:AAPL) is quite the leader in the tech field, and 2013 can be a monumental year if rumors of an Apple TV are true. Apple trades on the very cheap end of its tech peers at 12x earnings; Microsoft is at 15x and Google is at 21x. Couple the tech company’s valuation with its industry leading 5-year EPS growth of 20% and its 40% return on equity, and it is hard to deny Apple as a ‘growth at a reasonable price’ opportunity.

In addition to an entry into the living room, some other possible growth drivers that Cupertino bulls can look forward to next year include: (1) a deal to sell the iPhone via China Mobile, (2) a dividend boost, with Apple Inc. (NASDAQ:AAPL)’s near $120 billion pile of cash, (3) a blowout Q1 earnings release, and (4) a lower-cost iPhone to appeal to emerging market consumers.

Qualcomm, Inc. (NASDAQ:QCOM) is one of the best value opportunities in the semiconductor market. The tech company makes up 4.5% of Maverick’s 13F. Qualcomm is expected to see revenue growth of 25% in FY2013 and 9% in FY 2014. The company’s long-term EPS growth rate is also expected to be robust at 15%.

Qualcomm should see solid chipset sales in the coming year as the economy slowly improves, and continued growth in the smartphone market continues to boost this outlook. The stock’s forward P/E comes in at 13x, which is well below other major semiconductor companies like Broadcom (26x) and Texas Instruments (20x). Qualcomm’s greatest opportunity, though, may come from its development of LTE chipsets, and the development of LTE networks in developed nations. Billionaire Ken Fisher – founder of Fisher Asset Management - is one of the company’s key supporters (check out Ken Fisher’s big bets).

Avago Technologies Ltd (NASDAQ:AVGO) makes up 3.9% of Maverick’s 13F portfolio. Avago is also in the semiconductor industry, though it trades at less than a tenth of the market cap of Qualcomm. Avago sports an earnings multiple of 14x, below close competitors like Skyworks Solution (19x) and Hittite Microwave (26x). This tech company has one of the best returns on equity at 25%, and has a robust 5-year EPS growth rate of 12%. Compared to Maverick’s other top picks, Avago pays the highest dividend at 2.2%, with only a 24% payout.

What about Lee Ainslie’s No. 4 and 5 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

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!