CNBC host Jim Cramer has a sizable following thanks to his years as a successful hedge fund manager and to his personal style. Investors can get a good idea of his stock picks from watching his show, but can also see which stocks his charitable trust has reported owning. We compared the stocks that the trust most recently reported owning to those disclosed on billionaire George Soros’s most recent 13F filing (see Soros’s stock picks); here are the five largest holdings by market value in Soros’s portfolio that the trust also owned:
Soros initiated a position of over 15 million shares in American International Group, Inc. (NYSE:AIG) last quarter, making it the largest stock holding by market value in his 13F portfolio. Cramer’s trust also owned AIG, and in fact the insurer made our list of the most popular stocks among hedge funds for the third quarter (see the full top ten rankings). AIG is trading at half the book value of its equity, and our thinking would be that it probably doesn’t deserve that much of a discount; even a P/B of 0.7 or so would represent a sizable upside, and we think it’s worth considering as a value investment.
General Electric Company (NYSE:GE) was another common pick, with Soros increasing his stake by 22% to a total of more than 10 million shares. GE was one of Fisher Asset Management’s five favorite stocks during the third quarter; that fund is managed by billionaire Ken Fisher and his team (find more of Fisher’s favorite stocks). GE currently offers a dividend yield close to 4%, and the trailing P/E of 16- while not in pure value territory- doesn’t look too high either and income investors who like the yield shouldn’t be too worried about the valuation.