Jim Cramer and D.E. Shaw Like Apple Inc. (AAPL), IBM, and More

Page 1 of 2

Jim Cramer, former hedge fund manager and current CNBC host, manages a charitable trust. Investors can therefore get an idea of what stocks Cramer likes not only by keeping an eye on his show but also by following this trust’s stock picks. We decided to compare the stocks that Cramer’s trust most recently reported owning with those that billionaire David Shaw’s D.E. Shaw had owned according to the fund’s 13F filing for the end of the third quarter (see the full list of D.E. Shaw’s stock picks). Here is our quick take on the five largest holdings by market value in D.E. Shaw’s portfolio that Cramer’s trust also owned:

Jim Cramer

D.E. Shaw owned 1.5 million shares of Apple Inc. (NASDAQ:AAPL), giving the fund over $1 billion invested in the stock at the end of the quarter. Apple was the most popular stock among hedge funds for the third quarter (see the full rankings) and at 12 times trailing earnings we have to say that it still looks cheap to us. We aren’t as optimistic as the consensus of Wall Street analysts, who have the stock at a five-year PEG ratio of 0.5, but we think that Apple should see at least modest earnings growth over the next few years and that would make it a buy at the current price.

The hedge fund increased its holdings of International Business Machines Corp. (NYSE:IBM), another Cramer pick, by 13% during the quarter to a total of 2.4 million shares. Weakness in the hardware business has pummeled companies like Dell and HP, but IBM’s software and services operations have helped keep revenue and earnings about flat over the last year. At trailing and forward P/E multiples of 14 and 12, respectively, it’s possible that IBM is a value play and we’d certainly feel safer owning it than its peers.

D.E. Shaw’s investment team also added to their position in Wells Fargo & Company (NYSE:WFC). Wells Fargo isn’t just a popular pick between the large hedge fund and Cramer; it is well known as one of Warren Buffett’s favorite stocks (check out more of Buffett’s favorite stocks). The bank trades at a premium to book value- the other big banks, such as Citigroup and JPMorgan Chase, tend to have P/B ratios well less than 1- but at 10 times trailing earnings it appears that Wells Fargo is monetizing its assets at least as well as its peers are. We think that we’d prefer JPM, but the gap in attractiveness between the two is much smaller than it was a couple months ago.

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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines 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!