Hedge Fund Iridian Asset Management’s Stock Picks for 2013

Page 1 of 2

13F filings are rolling in for the end of December 2012; these filings disclose many of a hedge fund or other major investor’s long equity positions as of the end of the quarter, which in this case provide a picture of what fund managers liked going into 2013. There are multiple ways for investors to use these filings. We like to aggregate them into a database and then find the most popular stocks among hedge funds; the stocks we named as the most popular small cap picks in our August newsletter produced an excess return of 18 percentage points between September and January (read more about our hedge fund strategies). Another tool is to go fund by fund and see what stocks that manager would “recommend” to you- for free- and then do a quick pass looking at the company. Iridian Asset Management, a fund managed by David Cohen and Harold Levy, has filed its 13F for Q4. Read on to see what we think of its top picks and compare them to previous filings.

Eastman Chemical Company (NYSE:EMN)

Eastman Chemical Company (NYSE:EMN) was Iridian’s largest holding by market value as the fund reported a position of 4.4 million shares. While Eastman’s revenue was up 26% in the fourth quarter of 2012 compared to the same period in the previous year, net income has been low on a trailing basis and the trailing P/E is 25. Wall Street analysts expect considerably higher earnings over the next couple years, and so the forward P/E is only 10, but we would still be cautious. Viking Global, managed by Tiger Cub Andreas Halvorsen, had reported owning over 6 million shares at the end of September (see Halvorsen’s stock picks).

The fund owned 5.1 million shares of Wyndham Worldwide Corporation (NYSE:WYN), up slightly from three months earlier. The $7.8 billion hotels and hospitality company is another whose recent performance has not been particularly strong- in its most recent quarterly report, earnings were down slightly from a year earlier- and that isn’t a positive with the stock trading at 22 times trailing earnings. Growth estimates from the sell-side are high enough for a five-year PEG ratio of 1. Billionaire Stephen Mandel’s Lone Pine Capital had 5.9 million shares in its portfolio at the end of the third quarter (find Mandel’s favorite stocks).

See three more of Iridian’s top picks:

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

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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

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!