Hedgie’s Top Picks Have Already Beaten the Market by 3% in 2013: Verisk Analytics, Inc. (VRSK), FEI Company (FEIC)

Page 1 of 2

At Insider Monkey, we track the smart money’s best and brightest managers—about 450 give or take a few. Based on our research, it’s important to monitor this group off hedge funds, and we’ve shown that historically, retail investors that pay attention to this world have beaten the market handily. We also recently teamed up with MarketWatch to create the Billionaire Hedge Fund Index. In 2012, this index returned 24.3%, beating the S&P 500 ETF (SPY) by 8 percentage points (see the details of our market-beating strategy here).

Andrew Sandler

While the most well known of this bunch include kahunas like David Einhorn, Warren Buffett or George Soros, there are also quite a few names flying under the mainstream media’s radar. One such hedgie is Andrew Sandler and his fund, Sandler Capital Management. According to his latest fourth quarter 13F filing with the SEC, Sandler has an equity portfolio in excess of $1 billion. Let’s take a look at how he was positioning his fund for 2013, by briefly analyzing his top five stock picks.

FEI Company (NASDAQ:FEIC) was Sandler’s 31st largest equity holding at the end of the third quarter, and he upped his position by more than 200% in Q4. This bet, combined with the fact that FEI shares gained 6.8% from the beginning of the second week of October through the end of December, indicates that Sandler’s conviction has paid off. Year-to-date, FEI has already popped another 14.3%, and mid-single-digit upside is still projected from current levels, at least according to the average Wall Street analyst’s price target.

The broad appeal of FEI’s nanoscale imaging instruments, including for usage in corporate, academic and research environments, is the key bullish thesis behind this stock, and the sell-side is expecting annual EPS growth of 16-17% over the next half-decade. At a PEG of 1.36, shares aren’t particularly expensive at the moment, and according to this metric, they’re actually cheaper than 39 of the 50 other companies operating in the scientific & technical instruments industry.

Verisk Analytics, Inc. (NASDAQ:VRSK) and Generac Holdings Inc. (NYSE:GNRC), meanwhile, sit at No.’s 2 and 3 in Sandler’s equity portfolio, up from their third quarter positions of 18th and 26th. Both companies are up at least 4.5% since the start of 2013, and have gained more than 30% over the past twelve months. Verisk, a risk management information company, and Generac, a power generator manufacturer, obviously operate in vastly different sub-industries, but each is a solid value play in a fairly stable macroeconomic environment.

Verisk and Generac each sport price-to-earnings metrics that are at least 20% below peer norms, and each has experienced top and bottom line beats in at least four of the past five quarters. Verisk is expected to continue to benefit from its stable, loyal client base, and Generac controls nearly three-fourths of the residential standby generator market.

Are there any hedgies that are invested in both companies?

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

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

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

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!