Billionaire Julian Robertson’s Top Stock Picks Include Google Inc (GOOG), H&R Block, Inc. (HRB)

Page 1 of 2

We track quarterly 13F filings from hundreds of hedge funds and other notable investors, including legendary investor Julian Robertson (formerly of Tiger Management). We’ve found that the information included in 13Fs can be useful in developing investment strategies (for example, the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year) and of course it can also be useful to go through the favorite stocks of top managers and use these as a source of initial investment ideas. Read on for our quick take on Robertson’s five largest holdings as of the end of March or see the full list of his stock picks.

The 13F shows that Robertson increased his stake in Google Inc (NASDAQ:GOOG) by 19% to a little over 34,000 shares during the first quarter of 2013. According to our database of 13F filings, Google Inc (NASDAQ:GOOG) was the second most popular stock among hedge funds during the quarter (check out our full top ten list). The stock currently trades at 16 times forward earnings estimates, taking into account analysts expectations of a strong improvement in EPS over the next year and a half; net income grew 16% in the first quarter of 2013 versus a year earlier.

TIGER MANAGEMENTThe billionaire initiated a position of about 850,000 shares in H&R Block, Inc. (NYSE:HRB), which we’ve noticed picked up a good deal of attention from hedge funds during the quarter. The sell-side is also bullish on the tax preparation company: in the current fiscal year, they are looking for $1.89 in earnings per share which implies a P/E multiple of 15. We would be a bit concerned, however, that H&R Block, Inc. (NYSE:HRB)’s focus on physical locations (still responsible for the majority of business) could suffer from competition from tax software companies and services.

Mastercard Inc (NYSE:MA) was another of Robertson’s top picks. Last quarter the credit card company experienced an 8% increase in revenue compared to the same period in the previous year, with earnings rising 12%. However, the market has already priced high growth into the current stock price: Mastercard’s trailing and forward earnings multiples are 25 and 19 respectively. That’s a pretty aggressive valuation, even with the company’s recent performance, and we think that we’d be more interested in looking at competitors such as Discover and Capital One.

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 Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!