Curtis Macnguyen & Ivory Capital’s Stock Picks Include Google Inc (GOOG)

The fund owned about 80,000 shares of Google Inc (NASDAQ:GOOG) at the end of Q1. The technology company took a hit to its earnings after acquiring Motorola Mobility Holdings, but now due to the integration of that business unit and the organic growth of the advertising business it is boasting double-digit growth rates on both top and bottom lines. The forward P/E of 17 indicates that markets have priced in moderate earnings growth going forward. In the first quarter of the year, Google Inc (NASDAQ:GOOG) was one of the most popular stocks among hedge funds (check out the full top ten list).

According to the 13F, Macnguyen had 2.1 million shares of General Motors Company (NYSE:GM) in his portfolio at the beginning of April. Business was down slightly in the first quarter of 2013 versus a year earlier, partly due to weak European sales, but analysts are bullish on the auto industry in general. In the case of GM, this is supposed to result in substantial earnings growth over the next several years. General Motors Company (NYSE:GM)trades at 12 times trading earnings, but the five-year PEG ratio is only 0.7. We think we’d want to see better performance before considering it a value stock, however.

There are a number of interesting picks here, though some (such as General Motors Company (NYSE:GM) and Western Digital Corp. (NASDAQ:WDC)) are dependent on stabilizing their businesses in response to recent trends and as we’ve mentioned Google Inc (NASDAQ:GOOG) as priced expensively enough that it is dependent on future growth being up to expectations. Morgan Stanley and AIG also look like potential values though certainly Morgan Stanley’s peers tend to have similar forward earnings multiples.

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