Billionaire Jeff Ubben’s Top Five Long-Term Picks

#3 Adobe Systems Incorporated (NASDAQ:ADBE)

Shares held (as of September 30): 14.01 million
Total Value (as of September 30): $1.15 billion
Percent of Portfolio (as of September 30): 6.70%

Although he trimmed his stake in Adobe Systems Incorporated (NASDAQ:ADBE) since last year, Ubben’s ValueAct Capital still owns around 14 million shares of the company, the stake amassing 6.7% of the fund’s equity portfolio. Analysts see good things for the company ahead, which has an estimated next five year EPS growth rate of 32.77%. Not surprisingly, no analyst has a ‘Sell’ rating on the stock, and 19 out of the 26 analysts covering Adobe have ‘Buy’ ratings. Stephen Mandel’s Lone Pine Capital is long 6.21 million shares of Adobe, according to its latest 13F filing.

#2 Halliburton Company (NYSE:HAL)

Shares held (as of September 30): 37.15 million
Total Value (as of September 30): $1.31 billion
Percent of Portfolio (as of September 30): 7.64%

Although Halliburton Company (NYSE:HAL) has committed to selling assets that bring in as much as $7.5 billion in annual revenues to make the merger with Baker Hughes Incorporated (NYSE:BHI) go through, the Department of Justice recently notified the two oil service companies that their concessions were not sufficient enough. The two companies have, in response, extended the deadline to close the deal to April 30, 2016. Although regulators haven’t approved the deal yet, Ubben is optimistic, as he thinks the companies will do ‘whatever is necessary’ to win approval. This likely means divesting more assets. If the merger goes through, the companies’ margins will rise and if Saudi Arabia cuts crude production, so will their EPS (in a major way).

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