Billionaire Louis Bacon’s Top Stock Picks for Q2 Include Citigroup Inc (C)

Page 2 of 2

Three of Moore’s four largest holdings by market value were large banks, with the third being Bank of America Corp (NYSE:BAC). Bank of America carries a larger discount to the book value of its equity than Citigroup Inc (NYSE:C) does, with a P/B of 0.7, but it has also been having a more difficult situation in terms of profits. Even with Wall Street analysts projecting significant increases in earnings per share over the next couple of years, it trades at 10 times forward earnings estimates- even to slightly higher than its peers. Bank of America also deserves mention for rising 90% in the last year.

Hartford Financial Services Group Inc (NYSE:HIG) rounds out our list of Bacon’s top five picks; he increased his stake in the property and casualty insurance company between January and March, to a total of 4.3 million shares. Hartford is another stock whose market price reflects investor skepticism about the value of the assets on its balance sheet; we suppose that could be taken as a general theme of Moore Global’s portfolio here. Billionaire John Paulson’s 13F for the fourth quarter of 2012 showed over 18 million shares in his own portfolio (see more stocks Paulson owned).

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

Page 2 of 2