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

American International Group, Inc. (NYSE:AIG) was another common pick between the two portfolios. With the Treasury Department finally getting all the way out of the bailed-out insurer, the stock has recently popped a bit but is still valued at only half the book value of its equity. That leaves it with quite a bit of upside, even if in the medium to long term it still ends up at a moderate discount to book value. It’s also priced at 10 times analyst consensus for 2013, and revenue has been up recently. We would call it a value stock at those levels; a number of hedge funds were buying the stock in the third quarter.

Both of these investors also liked General Electric Company (NYSE:GE), which in the third quarter of the year reported 3% higher revenue and 8% higher net income than in the same period in 2011. Those growth rates aren’t particularly high, but are certainly acceptable for such a large company. Even with a dividend yield above 3%, however, we’re not sure that GE is particularly appealing from a value perspective at 17 times trailing earnings. Wall Street analysts expect better numbers in 2013- the forward P/E is 13, which would be a good price- but we don’t want to depend on the company to hit that target.