Lee Ainslie’s Low P/E Stock Picks Include Apple Inc. (AAPL)

Page 1 of 2

Several weeks after the end of each quarter, hedge funds report many of their long equity positions as of the end of that quarter to the SEC (and therefore to the general public) in the form of 13F filings. We collect these filings in our database and use them to develop investing strategies; for example, we have found that the most popular small cap stocks among hedge funds generate an excess return of 18 percentage points per year on average (learn more about our small cap strategy). We can also go through filings from individual funds and see which stocks they liked in a variety of categories, including those satisfying the traditional value criteria of low price-to-earnings multiples. Read on for our quick take on five of Lee Ainslie’s Maverick Capital’s top picks with both trailing and forward P/Es of 15 or lower or see the full list of stocks the fund reported owning.

Ainslie and his team owned 7.5 million shares of Macy’s, Inc. (NYSE:M) at the end of December, making the department store their largest holding by market value. Wall Street analysts expect Macy’s to grow its earnings this year, given the trailing P/E of 13 and the consensus for $3.89 in earnings per share for the fiscal year ending January 2014 (a forward multiple of 11). However, net income was actually down slightly in its most recent quarter compared to the same period in the previous fiscal year. AQR Capital Management, managed by Cliff Asness, was buying shares in Q4 (check out Asness’s stock picks).

MAVERICK CAPITALMaverick slightly increased its holdings of Apple Inc. (NASDAQ:AAPL) and owned a little over 540,000 shares at the beginning of this year. With a number of other hedge funds selling Apple Inc. (NASDAQ:AAPL) last quarter, it fell from its place as the most popular stock among hedge funds (AIG is the new #1). With the recent decline in the stock price as investors worry about a decline in margins, Apple Inc. (NASDAQ:AAPL) is valued at 10 times its trailing earnings. A number of bulls, meanwhile, are pushing the company to return more cash to shareholders through share repurchases or increased dividends.

Here are three more cheap stocks Ainslie liked:

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

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

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

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!