Billionaire Michael Price’s Long Term Stock Picks Include Citigroup Inc (C)

Page 1 of 2

One of the most common objections to incorporating 13F filings into an investment process is that the information in these filings is a bit out of date; the most recent round of filings discloses many of a hedge fund’s or other major investor’s long equity positions as of the end of March. However, we’ve actually fund that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year. In addition, even though 13Fs are old we can compare them to those from years ago to see which stocks investors have liked over a long time frame and so are more likely to still own. Here are five stocks which billionaire Michael Price’s MFP Investors owned at least $10 million of both in its most recent filing and in the one from the first quarter of 2011 (or see the full list of the fund’s stock picks over time):

One of MFP’s long term favorite stocks has been Citigroup Inc (NYSE:C), with about 800,000 shares in its portfolio per the most recent filing. Citigroup Inc (NYSE:C), which had been one of the ten most popular stocks among hedge funds during Q1 (check out the full top ten list), remains priced at a discount to the book value of its equity (the P/B ratio is 0.8) even after rising 90% over the last year. Earnings have not been particularly high recently, but they have been rising and Wall Street analyst forecasts for next year imply a forward P/E of 9.

Citigroup Inc (NYSE:C)At the end of Q1 Price and his team owned a little less than 510,000 shares of McGraw Hill Financial Inc (NYSE:MHFI) which had just sold off its education unit to Apollo Global. The company is now focused on providing financial information including through its Standard & Poors and Capital IQ business units. Parent companies are often thought to improve their operations following spinouts as management becomes more focused on the core business. McGraw Hill Financial Inc (NYSE:MHFI) is valued at 16 times consensus earnings for 2014, with a five-year PEG ratio of 0.9 as analysts expect future EPS growth.

The fund kept its stake in GulfMark Offshore, Inc. (NYSE:GLF), a $1.3 billion market cap offshore oilfield drilling and equipment services company, about constant at about 620,000 shares in the first three months of 2013. GulfMark Offshore, Inc. (NYSE:GLF) had been underperfoming expectations in 2012, but its reported results for Q1 were above consensus and with the sell-side expecting business to improve next year the forward P/E is 12. The company is dependent on improving its bottom line considerably to hit that target, however, and investors might prefer to consider other offshore exposed companies.

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.
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!