Monsanto Company (MON), Lennar Corporation (LEN): Billionaire Jeffrey Vinik’s Favorite Stocks May Surprise You

The next holding we will consider is in retailer Best Buy Co., Inc. (NYSE:BBY), with the fund holding 3,896,610 shares worth over $86 million, with Vinik selling nearly half of his holding during the quarter. Best Buy Co., Inc. (NYSE:BBY)’s earnings for its latest first quarter were disappointing, with the company reporting a net loss of $81 million, or $0.24 per share, compared to a profit of $0.46 per share in the corresponding period last year. Many analysts feel the impressive price action of the stock, currently trading at $26, not far from the 52-week high, is not justified by its fundamentals, and like Barrick Gold, this isn’t a very attractive play from Vinik.

Rounding out his top five is Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT), with the fund holding 1,271,000 shares worth approximately $81 million as of March 31, 2013, a substantial increase of 118% from the amount held at the end of the prior quarter. Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT) beat Mr. Market’s expectations in the first quarter, to tally revenue of $1.54 billion; analysts were expecting $1.47 billion for the quarter. Earnings per share were also $0.76, while analysts predicted EPS of just $0.53. Price action has been similarly impressive, with the stock currently trading near its 52-week high at $68.30. Overall, this is one of Vinik’s better picks.

Final thoughts

In spite of the impending closure of his fund, Jeffrey Vinik has had an impressive career as an investor, and therefore all five of these picks may be worth adding to your watchlist. Barrick Gold and Best Buy have had their troubles, but there’s at least an avenue toward recovery in both companies’ futures, no matter how dim. Starwood, Lennar Corporation (NYSE:LEN) and Monsanto Company (NYSE:MON) look like better bets on the whole, with the latter proving that it serves as an adequate No. 1 in any agriculture-focused investor’s portfolio; learn more about hedge funds’ strategies here.

Disclosure: none