How Hedge Fund Manager Robert Karr Was Preparing for 2013: Google Inc (GOOG), Yum! Brands, Inc. (YUM), SINA Corp (SINA)

Page 1 of 2

Thousands of hedge funds file quarterly 13F holdings with the SEC, though some are inherently better for retail investors to track. Historically, it has been possible to outperform Mr. Market by mimicking the best funds, and our small-cap strategy has already beaten the S&P 500 index by 22.5 percentage points since we introduced it to the public last fall (capitalize on market-dominating strategy).

Google Inc (GOOG), Robert Karr Joho CapitalWith that in mind, let’s take a look at one hedgie in particular: Robert Karr’s Joho Capital. Though he holds a relatively concentrated equity portfolio, Karr was honing in on a few stocks in particular at the end of the fourth quarter. Without further ado, here are his top five picks.

Google Inc (NASDAQ:GOOG) has been Joho Capital’s No. 1 holding since the second quarter of 2012, and in Q4, Karr was actually upping his stake in the tech giant by 6%. All in all, Google now accounts for a whopping 26.2% of Karr’s total 13F portfolio, indicating that he’ll remain heavily reliant on the company for the foreseeable future. Since the start of 2013, Google’s stock price has risen by almost 13%, and shares are currently trading just off an all-time high north of $800. Most analysts still expect Google to experience annual earnings growth in the mid-teens over the next half-decade, and a forward P/E of 14.9x indicates there’s still value here.

Mead Johnson Nutrition CO (NYSE:MJN) and Estee Lauder Companies Inc (NYSE:EL), meanwhile, are Karr’s No.’s 2 and 3 picks. Both companies operate in the consumer goods sector, and Mead Johnson focuses on pediatric nutrition while Estee Lauder has its fingers in the household products industry.

Now, what ties these picks together is their potential. Of the 60 S&P 500-listed consumer goods stocks, both Mead Johnson and Estee Lauder lie in the upper third in terms of earnings growth expectations this year. The sell-side is forecasting Mead to sport EPS growth of 19.3%, while Estee’s figure is a bit higher at 23.9%. Both stocks aren’t particularly expensive given these prospects, and Karr is joined by notable hedgies like Cliff Asness, Ken Griffin (see Ken Griffin and Citadel’s new buys) and GAMCO Investors’ Mario Gabelli, who are invested in this duo.

Yum! Brands, Inc. (NYSE:YUM) sits at 4th in Karr and Joho Capital’s portfolio, and it has turned in pretty uninspiring appreciation over the past year. Shares of the restaurant company are essentially flat over the past one-year and six-month time frames, and investors have actually lost close to 2% since the start of 2013.

How does Wall Street view this stock?

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!