Billionaires are Crazy About These Stocks: Apple Inc. (AAPL), Google Inc (GOOG), Citigroup, Inc. (C), American International Group, Inc. (AIG)

Page 1 of 2

Apple Inc. (NADSAQ:AAPL) investors have likely been bombarded with all sorts of opinions on what their shares will do next. Let’s take a look a one very bullish reason why it might not be a bad idea to initiate a value-based position in Apple Inc. (NASDAQ:AAPL) at the start of February.

Though exact estimates vary, it is widely accepted that about half of all American households hold at least one share of a publicly traded company’s stock, be it through direct or indirect ownership. Keeping this reality in mind, it’s self-evident that the legendary investors of our day—the David Einhorns and the Warren Buffetts, if you will—are truly the crème de la crème.

At Insider Monkey, we teamed up with MarketWatch to create the Billionaire Hedge Fund Index to measure just how talented the smart money’s elite is at stock picking. The Index tracks over 40 billionaire fund managers and uses a consensus-based weighting criterion to order its holdings. After a full year of its existence, the results are truly exemplary. In 2012, this index has returned 24.3% vs. 16.0% for the S&P 500 ETF. That’s an outperformance of 8.3 percentage points.

Historically speaking, imitating hedge funds’ top picks outperformed the market by 2 percentage points a year, and their most popular small-cap investments generate an even better performance. Since launching our newsletter, our small-cap strategy has returned 25.4% since the end of August, versus a 7.4% return for the S&P 500 ETF (here’s how you can start using this market-dominating strategy today).

With that being said, we’re going to reveal the top five holdings of the Billionaire Hedge Fund Index, so retail investors can begin to learn how to best prepare their portfolios for the future.

Apple Inc. (NASDAQ:AAPL)

Apple Inc. (NASDAQ:AAPL) was tied for first among the 40-plus billionaires tracked by the Index, with 18 mega-investors holding at least $10 million worth of the stock at the end of the last 13F-filing period with the SEC. Apple’s swoon has been well-documented by all corners of the blogosphere, but shares are still up more than 11% since the start of 2012.

The tech giant is clearly oversold at its current levels, and the company has a number of potential growth drivers—a deal with China Mobile, a smart TV and a dividend hike among chief importance—that can push shares to a fairer price. Some of the top-name investors in Apple Inc. (NASDAQ:AAPL) include David Tepper, Dan Loeb and David Einhorn (see David Einhorn’s newest stock picks).

Google Inc (NASDAQ:GOOG) also has 18 billionaires invested, and since the beginning of last year, it has outperformed Apple Inc. (NASDAQ:AAPL) by more than 2 percentage points. Lone Pine Capital’s Stephen Mandel, one of the most successful of Julian Robertson’s “Tiger Cubs,” owns the most Google shares of the 400 or so hedge funds we track.

Amid continually declining cost-per-click averages, Google Inc (NASDAQ:GOOG) beat the Street’s earnings estimates in its latest quarterly financials, but revenues fell a bit flat. Investors have still been bullish on the company’s prospects in 2013, and its growth story is still clearly intact. One intriguing project to watch is Google’s in-house development of a so-called “X Phone.” It’s too early to predict what an entry into the smartphone manufacturer’s circle will mean for shareholders, but ardent investors should stay on top of this situation.

Besides Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL), who’s the best of the rest?

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!