Jim Cramer and Billionaire David Tepper Like Apple Inc. (AAPL) and More

Page 1 of 2

Last month, Appaloosa Management filed its 13F with the SEC for the third quarter of 2012. Appaloosa was founded by David Tepper, who has since become a billionaire due to his success as an investor even as the hedge fund has swelled to $16 billion in assets under management (check out Tepper’s stock picks). We decided to compare the hedge fund’s stock holdings to those reported by Jim Cramer’s charitable trust; reviewing the positions held by this trust allows investors insight into what the former hedge fund manager likes. Here are the five largest holdings by market value in Appaloosa’s most recent 13F that Cramer’s charitable trust also disclosed owning:

APPALOOSA MANAGEMENT LP

Tepper’s top single stock pick (he had a large position in an ETF tracking the NASDAQ) was Apple Inc. (NASDAQ:AAPL) with a position of about 520,000 shares. Apple had in fact led our list of the most popular stocks among hedge funds (see the rest of the top ten) with 146 hedge funds and other notable investors in our database of 13F filings owning the stock. A stock at 12 times trailing earnings generally doesn’t need much growth to prove undervalued; with Apple at that price, and with a strong position in several growing markets, we agree that it is a good value.

Hedge funds’ top financial stock (find more financial stocks hedge funds love)- and third most popular pick overall- was another one shared between Tepper’s and Cramer’s trust’s portfolios: American International Group, Inc. (NYSE:AIG). AIG is another value play, from our perspective: its P/B ratio is 0.5, meaning that it has quite a bit of upside if its assets turn out to be worth slightly less than their current book values. It also trades at 10 times forward earnings estimates. We think that it’s a good stock to buy.

Appaloosa increased its stake in Broadcom Corporation (NASDAQ:BRCM) by 43% between July and September to a total of 3.6 million shares, while Cramer’s trust owned it as well. In the third quarter of the year, Broadcom reported a 19% decline in earnings though revenue was up moderately. The stock carries a trailing P/E of 26, but analyst expectations are that the company will recover in 2013 and so the forward P/E is 11. Billionaire Ken Griffin’s Citadel Investment Group was also buying Broadcom during the quarter (research more stocks Griffin liked). We would avoid the stock for now, given its recent performance and its valuation.

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 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

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

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!