Hedge Fund Billionaires Are Hoarding These 5 Stocks

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3. General Motors

Warren Buffett is largely considered the greatest investor in modern history, accumulating a fortune valued more than $50 billion by investing in U.S. blue chips like The Coca-Cola Company (NYSE:KO) and General Electric Company (NYSE:GE). But according to his company’s latest 13F filings, Buffett recently boosted his stake in another iconic U.S. brand, carmaker General Motors Company (NYSE:GM), increasing his shares held by 50% to 15 million. Fellow hedge fund billionaire David Tepper, who ranks 59 on Forbes’ 2012 list of the richest people in the United States, wasn’t far behind, increasing his stake in General Motors by 26% to 6 million shares.

4. American International Group

American International Group, Inc. (NYSE:AIG) was one of the most controversial companies in the financial implosion of 2008, requiring $182 billion in government bailouts to be able to remain operational. But now that a few years have passed, the company is once again turning a profit and the hedge fund crowd is recognizing opportunity. This had George Soros, the billionaire manager and co-founder of the legendary Quantum fund, buying 15 million shares during the third quarter, making the resurgent insurance and financial company his largest holding. AIG was one of the most active stocks in the hedge fund community during the third quarter, with total filers climbing 80% to 110 from the previous quarter, according to Insider Monkey.

5. Priceline.com Inc.

Priceline.com Inc (NASDAQ:PCLN) has been red hot in the past two years, with shares up a market-beating 55%. But it’s clear the hedge fund community still sees plenty of upside in this online travel agent leader, with four billionaire hedge fund managers taking big positions during the third quarter. That includes Lone Pine Capital, managed by billionaire Stephen Mandel, increasing its stake by 26% from July to September to a total of 1.4 million shares. That lifted the fund’s total investment in Priceline to $850 million, its single largest position.


Risks to Consider: The most popular stocks with hedge funds can be volatile if managers cool on any individual stocks. This is what’s driving Apple Inc. (NASDAQ:AAPL) decline, the most widely held stock with hedge fund managers for most of the year, currently suffering a sharp drop of 13% in the past three months, as hedge fund managers rotate into fresh ideas.


Action to Take –>
Billionaire hedge fund managers have a track record of scoring big gains and moving the market with their latest investments and trades. Mimicking these titans of Wall Street is a great way to follow the smartest money on the Street and give your portfolio the look of a hedge fund billionaire.

This article was originally written by Michael Vodicka, and posted on StreetAuthority.


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