Billionaire Kerr Neilson’s Small Cap Picks Include SINA Corp (SINA)

Page 1 of 2

We track 13F filings from hedge funds and other notable investors as part of our work researching investment strategies, and one of our findings has been that the most popular small cap stocks among hedge funds outperform the S&P 500 by an average of 18 percentage points per year. We think that this is because small cap stocks receive less attention, and so are more likely to be undervalued (or overvalued for that matter). As such the small cap picks of individual funds can serve as potential sources of ideas for further research if after a brief look they seem to be good values. Read on for the five largest positions of billionaire Kerr Neilson’s Platinum Asset Management in stocks with market capitalizations between $1 billion and $5 billion as of the end of December (or see the full list of Platinum’s stock picks).

SINA Corp (NASDAQ:SINA)

SINA Corp (NASDAQ:SINA), a Chinese web portal providing advertising services, was one of Platinum’s top picks with the fund owning 4.8 million shares at the end of December. SINA Corp (NASDAQ:SINA)’s stock price has fallen 18% in the last year, and business in the fourth quarter of 2012 was not particularly good: revenue was up only slightly versus a year earlier, and earnings fell 75%. That’s not good for a stock which currently trades at 32 times forward earnings estimates. Tiger Cub Robert Karr’s Joho Capital increased its holdings of SINA Corp (NASDAQ:SINA) by 73% in the fourth quarter of 2012 (find Karr’s favorite stocks).

Neilson and his team owned 9.3 million shares of Foster Wheeler AG (NASDAQ:FWLT), a $2.3 billion market cap engineering and construction company which builds facilities for energy companies and utilities, according to the 13F. Foster Wheeler AG (NASDAQ:FWLT) carries a high beta at 2.2, showing that the company is dependent on broader economic activity. Its most recent quarter showed steep declines in revenue and earnings; Wall Street analysts are projecting a recovery, and so the forward P/E is only 11, but we’d be hesitant considering the recent poor performance.

The fund reported a position of almost 16 million shares in Stillwater Mining (NYSE:SWC), which extracts metals including palladium and platinum. It’s another stock which tends to move in line with broader market indices, as the beta here is 2.8. Business has been down here as well, and the trailing earnings multiple is 26- so Stillwater will have to improve its financials considerably in order to justify its current valuation let alone prove undervalued. A number of market players are bearish as the most recent data shows that 20% of the outstanding shares are held short.

Page 1 of 2

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.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

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

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!