Apple Inc. (AAPL) Is One of Billionaire David Einhorn’s Top Stock Picks

Page 1 of 2

Billionaire David Einhorn is one of the most closely followed hedge fund managers in the financial media- and, sometimes, even in the general news as has been the case with his recent conflict with Apple Inc. (NASDAQ:AAPL) management over the potential issuance of preferred stock and the company’s plans to ban itself from doing so. Einhorn’s Greenlight Capital, as well as many other hedge funds and notable investors, files quarterly 13Fs. We have used these filings to develop investment strategies; for example, the most popular small cap stocks among hedge funds produce an average excess return of 18 percentage points per year (learn more about our small cap strategy). Of course we can also look at Greenlight’s 13F to see what stocks Einhorn and his team have liked recently. Here are their five largest 13F positions by market value as of the end of December 2012:

Greenlight actually increased its stake in Apple Inc. (NASDAQ:AAPL) by 20% during the fourth quarter as the stock price fell, and entered 2013 with a total of 1.3 million shares in its portfolio. A number of hedge funds were actually selling Apple, and so it is no longer the most popular stock among hedge funds (AIG is hedge funds’ new #1). Apple Inc. (NASDAQ:AAPL) now trades at 10 times trailing earnings, clearly value levels, and it is nearing the point where even a small decline in earnings could leave it undervalued. The sell-side is predicting high earnings growth, and even though we are less optimistic we do think the market is setting a very low bar.

GREENLIGHT CAPITALThe fund reported a position of over 21 million shares in General Motors Company (NYSE:GM). A popular value stock- it’s also one of the top picks among hedge funds- GM carries a trailing P/E of 9. Revenue was up 4% last quarter compared to the fourth quarter of 2011, and the auto market does seem to be strengthening. It could be worth looking at GM compared to other auto manufacturers- Ford Motor Company (NYSE:F) is at about the same pricing and Honda Motor Co Ltd (NYSE:HMC), despite its premium, could be a good buy as well. Warren Buffett was buying shares of GM in Q4 (find Buffett’s favorite stocks).

See three more of Einhorn’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

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

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

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!