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.

Hedge Fund Valiant Capital’s Favorite Tech Stocks Include Apple Inc. (AAPL)

Page 1 of 2

13F filings disclose many of a hedge fund’s or other major investor’s long equity positions. One way that we use these disclosures is by pooling them to develop investment strategies; for example, the stocks we named in our August newsletter as the most popular small cap stocks among hedge funds went on to produce an excess return of 18 percentage points between September and January (read more about our hedge fund strategies). Of course, 13F filings can also serve as a guide to what a particular investor’s favorite stocks or favorite industries are. Christopher Hansen’s Valiant Capital recently filed its 13F for the end of December 2012. We picked out the five largest holdings in technology stocks that Valiant reported owning. Read on for our thoughts on these companies and compare them to previous filings.

Apple Inc. (NASDAQ:AAPL)

Valiant’s largest position by market value was its roughly 310,000 shares of Apple Inc. (NASDAQ:AAPL). The stock currently trades at 10 times trailing earnings, as many market players believe that net income will decline going forward as lower margins offset the growing tablet and smartphone business. Apple Inc. (NASDAQ:AAPL) was the most popular stock among hedge funds in the third quarter of 2012 (see the full top ten list). We think that the market has overreacted to Apple Inc. (NASDAQ:AAPL)’s news and so while we are not as bullish as the sell-side (whose earnings estimates imply a forward P/E of 9) we think it is a value play.

Facebook Inc (NASDAQ:FB) was another of Valiant’s favorite tech stocks, with 3.8 million shares in its portfolio. This was up from 1.5 million shares at the beginning of October. Facebook Inc (NASDAQ:FB) trades at 37 times forward earnings estimates, and while the company’s revenue growth has been high we are skeptical that it can actually hit analysts’ earnings targets and then continue strong growth. Tiger Global Management reported a position of almost 12 million shares of Facebook Inc (NASDAQ:FB) in its own 13F for the end of the third quarter of 2012 (find Tiger Global’s favorite stocks).

See three more of Valiant’s tech picks, including Google:

Page 1 of 2
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!