Billionaire George Soros’s High Upside Potential Picks Include AIG

Soros owned 3.2 million shares of Acacia Research Corporation (NASDAQ:ACTG), a $1.3 billion market cap patent portfolio manager and services provider. The stock is down 38% in the last year, a slightly higher decline than Acacia’s fall in revenue. However, Wall Street analysts believe that the company will recover from its recent troubles with their earnings projections generating a 2013 P/E of 11 and a low PEG ratio. We think that we would want to see better results from the company.

Soros increased his stake in General Motors Company (NYSE:GM) to a total of 4.1 million shares. GM, like AIG, made our list of hedge funds’ favorite stocks for Q3 2012; Greenlight Capital’s billionaire manager David Einhorn has used it as one of his buy recommendations recently, and that fund had GM as one of its top picks at the end of the third quarter (research more stocks Einhorn likes). GM is cheap, with trailing and forward P/Es of 11 and 8 respectively, but the company has been struggling more than some of its peers and we’d suggest that investors at least look elsewhere among automakers and auto related companies before joining top investors in the stock.

Disclosure: I own no shares of any stocks mentioned in this article.