Billionaire Ken Fisher’s New Stock Picks

FISHER ASSET MANAGEMENTKen Fisher is one of the 400 richest people in the United States, drawing his wealth from his books on money management and from his work at Fisher Asset Management. The large fund recently filed its 13F for the second quarter of 2012 with the SEC. We covered the top holdings in Fisher Asset Management’s portfolio according to its recently released 13F filing for the second quarter of 2012, and found that none of those stocks had large changes in position from last quarter. While this is interesting in itself, we decided to look a little further deeper in the filings and pick out the six largest new positions in Fisher’s portfolio. Fisher Asset Management doesn’t recommend or endorse any of the stocks or analysis in this article, and we have no relationship with the fund, but based on SEC filings these are our opinions of what they are thinking. Read on to see the fund’s largest new positions or compare them to previous portfolio filings.

Fisher’s largest new holding according to the 13F was Priceline.com (NASDAQ:PCLN), which made our list of the ten most popular services stocks among hedge funds in the first quarter of the year. The fund bought about 600,000 shares of the travel services company, which has risen 33% over the last year due to strong growth and the fact that it has beaten earnings estimates for four quarters in a row. Sell-side analysts are now at the point where they are estimating a forward P/E of 16 for the company, compared to its trailing P/E of 29, meaning that if the stock continues to beat estimates it will more than justify its current price.

The second and third largest new holdings in Fisher’s portfolio have a common theme that investors should pay close attention to: big spenders. Fisher initiated a 12.9 million share position in Louis Vuitton and a 9 million share position in Las Vegas Sands Corp. (NYSE:LVS). Considering the discussion of a global economic slowdown, particularly in China (a crucial market for both companies), this is a bold stance for Fisher to take. Stephen Mandel’s Lone Pine Capital was another major investor in Las Vegas Sands Corp. (NYSE:LVS) according to that fund’s 13F for the first quarter.

Combining both themes that have been mentioned thus far, Fisher also initiated a 6.6 million share position in luxury/business travel focused payment company American Express (NYSE:AXP), making this the fund’s fourth largest new holding. American Express experienced very low growth in its most recent quarter compared to the same quarter in 2011 but trades at value stock levels with a trailing P/E of 13 and a forward P/E of 12. American Express is also Warren Buffett’s credit card stock of choice, with Berkshire Hathaway owning over 150 million shares at the end of March.

Salesforce.com Inc. (NYSE:CRM) was the fifth largest new position that Fisher Asset Management took in the second quarter of 2012. The fund bought 2.7 million shares of the sales and customer relationship management company, which is up about 20% so far this year. Salesforce.com Inc (NYSE:CRM)’s revenue growth has been strong- 38% in the most recent reported quarter compared to the same period the previous year- but its price assumes considerable growth in the future with a forward P/E of 62 and a five-year PEG of 3.

Finally, HSBC Holdings Plc (NYSE:HBC) joined the Fisher portfolio in the form of an 8.2 million share position. HSBC Holdings Plc (NYSE:HBC) is currently dealing with a scandal involving money laundering services provided to Mexican drug lords, and may have legal problems as a result of the LIBOR manipulation scandal as well. The stock price has held up well, however, as it is up on the year and only slightly underperforming the S&P 500. It trades at just under book value and pays a 4.3% dividend yield.

While Fisher’s largest positions were generally constant, the fund’s new positions look quite bullish on global and Chinese growth as well as on the travel industry. These purchases give the portfolio quite a bit of downside risk if markets slide, and therefore serve as a vote of confidence for stocks in general.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!