Cliff Asness’s Top Stock Picks Include Apple Inc. (AAPL)

Page 1 of 2

By studying quarterly 13F filings from hedge funds, we have found that the most popular small cap stocks among hedge funds outperform the S&P 500 by an average of 18 percentage points per year (read more about our small cap strategy). We also think that studying 13F filings can be advantageous to investors who are looking for stock ideas for further research, since they can be taken as a list of stock picks from top managers. Cliff Asness founded AQR Capital Management in 1997 after earning a Ph.D. in finance and working at Goldman Sachs Asset Management. Read on for our quick take on AQR’s five largest holdings by market value or see the full list of Asness’s stock picks.

Apple Inc. (NASDAQ:AAPL) may have lost its place as the most popular stock among hedge funds during the fourth quarter of 2012 (AIG is the new most popular stock), but AQR actually increased its position slightly to a total of about 520,000 shares. Pessimism about Apple Inc. (NASDAQ:AAPL)’s margins have driven the stock down to a trailing price-to-earnings ratio of 10. While we do expect much lower earnings than the sell-side (whose estimates imply a five-year PEG ratio of 0.5), we would say that Apple Inc. (NASDAQ:AAPL) is undervalued at its current price particularly given potential uses of its cash.

AQR CAPITAL MANAGEMENTAsness cut his stake in Exxon Mobil Corporation (NYSE:XOM) by 6% but the supermajor remained one of his top five picks. Exxon Mobil made our list of the most popular energy stocks among hedge funds for Q4 (find more energy stocks hedge funds love), and it too has value potential with analyst consensus for 2014 implying a forward P/E of 11. That is actually a slight premium to many other oil majors, though Exxon Mobil did grow its earnings last quarter compared to the fourth quarter of 2011 and arguably would merit a premium in any case for being the industry leader (and certainly not having the same issues as BP plc (NYSE:BP), for one).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!