Hedge Fund Manager Bernard Horn’s Stock Picks Include Infosys

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Teva Pharmaceutical Industries Ltd (NYSE:TEVA). Polaris owned 1.7 million shares of the Israeli provider of generic pharmaceuticals. Teva is a Street darling: its trailing P/E is 15, but the forward P/E is 7 and the five-year PEG ratio is 0.9. This suggests that consensus is for solid earnings growth in the next several years, even though its stock price is also down in the last year. Jeffrey Altman’s Owl Creek owned 3.1 million shares at the end of the third quarter (check out Owl Creek’s stock picks).

Carter’s, Inc. (NYSE:CRI). The baby and children’s apparel company- Carter’s owns the OshKosh brand- was another of Horn and his team’s top picks. Hedge fund Viking Global reported a position of 3.6 million shares; the fund is managed by Tiger Cub Andreas Halvorsen (find more stocks Viking Global likes). At 23 times trailing earnings Carter’s is less attractive from a value perspective and there is considerable short interest in the stock.

Frontier Communications Corp (NASDAQ:FTR). Frontier is another of the fund’s favorite stocks, and another which has declined in price over the last year; the most recent data has over 20% of the outstanding shares held short. It is also priced for growth with trailing and forward P/Es of 29 and 17, respectively, despite lower revenue in the third quarter versus a year earlier. Tiger Global Management, another Tiger Cub hedge fund, was another investor in the stock.

Marathon Petroleum Corp (NYSE:MPC). Polaris had about 940,000 shares of the refining and marketing company in its portfolio. The stock has doubled in the last year, but it still trades at only 8 times trailing earnings. Growth expectations are high here as well, but they yield a five-year PEG ratio of 0.5 due to what is already attractive pricing. Billionaire Steve Cohen’s SAC Capital Advisors initiated a position in Marathon in the third quarter (research more of Cohen’s stock picks).

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