Billionaire Bruce Kovner Likes AIG and More High Upside Potential Stocks

Page 1 of 2

CAXTON ASSOCIATES LP13F filings allow investors to see some of the long equity positions owned by hedge funds and other major investors several weeks after the end of the quarter. These shouldn’t necessarily be taken as what the managers are thinking right now, but can still be useful sources of names for further research. We can also screen these stock picks for characteristics that we like, such as P/E multiples or PEG ratios if we want to find value stocks or those whose growth potential may be high enough to make them undervalued. Here are four stocks that billionaire Bruce Kovner’s Caxton Associates had over $15 million invested in at the end of September (according to the fund’s 13F filing) with low PEG ratios:

Insurer American International Group, Inc. (NYSE:AIG) stands out for a PEG ratio of .43, which is a result of the market’s skepticism of the company- the stock trades at only half of book value, and at 10 times forward earnings estimates- and expectations of solid earnings growth over the next several years. Caxton increased its stake in AIG by over 300% last quarter to a total of 8.7 million shares, and similar optimism from other funds gave AIG a place as one of the most popular stocks among hedge funds (see the top ten most popular stocks). We like the stock at this price; it certainly should have some discount to book value, but we think that the market is giving it too much of one.

Kovner and his team also liked MetroPCS Communications Inc (NYSE:PCS), with 1.6 million shares in their portfolio at the end of September. Fellow billionaire John Paulson initiated a position in the wireless phone company during the third quarter, making it one of his ten favorite stocks (check out Paulson’s stock picks). Analyst consensus for 2013 implies a forward P/E of 13, and a PEG ratio of 0.7; however, revenue growth was light in the third quarter compared to the same period in 2011. It might not be as high a priority.

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 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

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

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!