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
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 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

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

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!