State Street, General Dynamics, and More: Billionaire Thomas Steyer’s Cheap Stock Picks

Page 1 of 2

FARALLON CAPITALFarallon Capital Management is one of the largest hedge funds in the world, with over $20 billion in assets under management at the beginning of 2012. Thomas Steyer, who founded the firm in 1986, has become a billionaire due to Farallon’s success over time. As a major investor, Farallon discloses many of its long equity positions in 13F filings six to seven weeks after the end of the quarter. We decided to go through the fund’s most recent filing (research which stocks Farallon owned) and take a brief look at those which satisfied basic value criteria. Here are the five largest holdings in Farallon’s 13F portfolio with trailing and forward P/E multiples of 14 or lower:

One of Steyer’s top ten picks was State Street Corporation (NYSE:STT), with a position of 2.9 million shares in the asset manager and custody bank. Earnings were up last quarter versus a year earlier, though revenue showed a slight decline. The market capitalization of $22 billion makes for a trailing P/E of 12, which would be about right if State Street’s bottom line remained constant going forward. Trian Partners, managed by billionaire activist investor Nelson Peltz, reported owning 9.1 million shares in its own 13F (check out Nelson Peltz’s stock picks).

Rockwell Collins, Inc. (NYSE:COL) was another of Farallon’s picks as the hedge fund increased its holdings by 23% to a total of 1.9 million shares. Rockwell Collins provides communications and other electronic systems to government and commercial customers; despite concerns over cuts to military spending, Wall Street analysts seem to be anticipating earnings growth next year. The stock carries trailing and forward P/E multiples of 14 and 12, respectively. Rockwell Collins was one of Valueact Capital’s top stock picks. We think that we would avoid it.

Page 1 of 2
Comments
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

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!