Hedge Fund Egerton Capital’s Top Stock Picks Include Visa and Disney

Page 1 of 2

Egerton Capital, a hedge fund managed by John Armitage, has filed its 13F for the end of December. These filings disclose many of a hedge fund or other notable investor’s long equity positions in U.S. stocks several weeks after the end of a fiscal quarter. Armitage co-founded Egerton with Tiger Cub William Bollinger in 1994; the fund has over $4 billion in assets under management. Read on for our quick take on Egerton’s five largest holdings and compare them to the fund’s previous filings.

The fund’s top pick was News Corp (NASDAQ:NWSA), which is in the process of breaking up into two separate media companies. Similarly to a spinout situation, the breakup of News Corp has the potential to create shareholder value if management of the new companies is better able to focus on issues impacting what had previously been only a part of a larger business. Read more about why hedge funds like to invest in spinouts. The stock trades at 14 times analyst expectations for earnings in the June 2014 fiscal year. Egerton owned almost 18 million shares of News Corp at the beginning of the year, up from about 15 million shares three months earlier.

Visa, American Express, MastercardArmitage and his team have also added shares of Visa Inc (NYSE:V), closing December with 1.9 million shares of the credit card company in their portfolio. Visa’s stock price is up 55% in the last year, accompanying double-digit rises in both revenue and earnings. The market expects more growth on the bottom line from current levels, given the forward P/E of 19. Visa had been the most popular services stock among hedge funds in the third quarter of 2012 (see the ten most popular services stocks). We think that we might prefer to look at cheaper credit card stocks such as Capital One Financial Corp. (NYSE:COF) or Discover Financial Services (NYSE:DFS).

Disney, another credit card company, and a big bank completed the top five list:

Page 1 of 2
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 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

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!