Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Google Inc (GOOG) & The Rest Of This $400 Million Hedge Fund’s Top Picks

Page 1 of 2

Related ticker: Google Inc (NASDAQ:GOOG)

In 2012, Siddharth Thacker and Brandon Weber launched Signpost Capital Advisors, a hedge fund which currently has about $400 million under management and plans to close to new investors once it reaches $500 million (existing investors would be able to contribute additional capital, at least for now). Thacker and Weber had previously worked at Citadel Investment Group. The fund tends to carry fairly low net exposure.

Sergey Brin

Signpost and many other hedge funds file quarterly 13Fs with the SEC, disclosing many of their long equity positions from the end of the most recent quarter. We maintain a database of these filings to help us develop investment strategies; we have found, for example, that the most popular small cap stocks among hedge funds outperform the S&P 500 by 18 percentage points per year on average (learn more about imitating small cap picks). Here are Signpost’s five largest holdings by market value as of the beginning of January, according to the 13F on the SEC’s website:

The fund reported a position of about 470,000 shares in Valero Energy Corporation (NYSE:VLO), a refiner and marketer of petroleum products. Downstream energy companies are generally cheap in the current market, and Valero Energy Corporation (NYSE:VLO) is no exception with its trailing and forward earnings multiples both coming in at 7. The sell-side is generally bullish on the company when looking at the next several years and as a result the five-year PEG ratio is 0.8. The stock has risen 86% in the last year; we’d note that its beta is 2.1.

Signpost owned a little over 20,000 shares of Google Inc (NASDAQ:GOOG), making that stock another of its top five picks. Google had made our list of the most popular stocks among hedge funds in the fourth quarter of 2012 (find more of hedge funds’ favorite stocks). In the first quarter of 2013, Google Inc (NASDAQ:GOOG)’s earnings rose by 16% versus a year earlier. The market is expecting the company to continue to achieve growth through its search and Motorola Mobility businesses, and so the trailing P/E is 26.

According to the 13F, Signpost had slightly more than 20,000 shares of Inc (NASDAQ:PCLN) in its portfolio as well. Priceline is actually similar to Google Inc (NASDAQ:GOOG) in terms of its valuation: the trailing and forward P/Es are 26 and 16, respectively, as both investors and Wall Street analysts believe that the travel bookings website will perform strongly over the next couple years and beyond (backed up by revenue and earnings each rising over 20% last quarter compared to Q1 2012). In Inc (NASDAQ:PCLN)’s case, some of this growth may come from the pending acquisition of Kayak.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!