Jim Cramer and Billionaire Ken Griffin Like Apple Inc. (AAPL) and These Stocks

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Cramer’s trust and Citadel both owned shares of EMC Corporation (NYSE:EMC), with the hedge fund increasing its stake by 42% to a total of 5.2 million shares. At a market capitalization of $51 billion, the data storage company trades at 20 times trailing earnings. That seems like a fairly high price for a company which, in the third quarter of 2012, had its revenue and earnings increase by no more than 7% compared to the same period in the previous year. EMC was one of the most popular tech stocks among hedge funds according to our database of 13F filings (see more tech stocks hedge funds were crazy about), but we think that we’d avoid it.

Griffin also liked Broadcom Corporation (NASDAQ:BRCM), reporting a position of 4.2 million shares, and Cramer’s trust reported owning the semiconductor company as well. The trailing numbers don’t look good, but the sell-side expects considerably better earnings in 2013 and so the valuation is only 12 times consensus earnings for this year. Of course, we wouldn’t take these projections at face value and we’d certainly wait to actually see strong results before considering whether or not to buy. Appaloosa Management, which is managed by billionaire David Tepper, was another major investor in Broadcom. Research more stocks that Tepper likes.

Disclosure: I do not own shares of any stock mentioned in this article.

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