Tiger Consumer Management’s Top Stock Picks Include Google Inc (GOOG)

The most popular small cap stocks among hedge funds tend to outperform the S&P 500 by an average of 18 percentage points per year, according to our historical analysis of 13F filings (learn more about imitating hedge funds’ small cap stock picks). We also like to study what hedge fund managers and other notable investors own according to their 13Fs, which disclose many long equity positions as of the end of the last fiscal quarter (so current 13Fs, filed in February, provide information from December). While blindly following these stock picks often isn’t a good idea, we think that it can be useful for investors to see a short list of top stock picks and then decide if they are worth further research- much like how many investors treat stock screens. Here are the five largest holdings by market value from Tiger Cub Patrick McCormack’s Tiger Consumer Management’s 13F (or see the full list of stocks the fund reported owning):

Google Inc (NASDAQ:GOOG)

Tiger Consumer’s top pick was Google Inc (NASDAQ:GOOG), reporting a position of over 190,000 shares. Google Inc (NASDAQ:GOOG) made our list of the most popular stocks among hedge funds for the fourth quarter of 2012, as measured by the number of funds which included it in their portfolio (find more stocks hedge funds loved). The company experienced a 7% increase in earnings last quarter compared to the fourth quarter of 2011, as search growth overcame the addition of Motorola Mobility Holdings. The integration of Motorola provides a source of potential improvement for Google Inc (NASDAQ:GOOG).

The fund owned 2.8 million shares of Kraft Foods Group Inc (NASDAQ:KRFT) at the end of December. Kraft operates as a North American-based food and beverage company following the breakup of the larger Kraft company into Kraft Foods and Mondelez International Inc (NASDAQ:MDLZ). Each of these was among hedge funds’ favorite consumer goods stocks according to our database of 13F filings (read our list of the ten most popular consumer goods stocks). Analyst consensus for 2014 implies a forward P/E of 16, which is in line and perhaps a bit cheaper than where many other packaged food companies trade.

See three more of Tiger Consumer’s stock picks, including a leading home improvement store:

McCormack and his team increased their stake in The Home Depot, Inc. (NYSE:HD), which is currently a common way to speculate on a booming housing market, by 29% to a total of 1.9 million shares. Up 43% in the last year, Home Depot currently carries trades at 23 times trailing earnings. The company has been doing quite well recently: in the fiscal quarter ending in early February, sales were up 14% compared to the same period in the previous fiscal year and earnings rose 32%. Billionaire Ken Fisher’s Fisher Asset Management owned 8.3 million shares of Home Depot at the beginning of 2013 (check out Fisher’s stock picks).

Visa Inc (NYSE:V) was another of the fund’s top stock picks. Credit card stocks have generally been doing well in the last year, and Visa is no exception with a 36% rise in the stock price. Interestingly, Robertson himself and some other Tiger Cubs were selling Visa between October and December (research more trades billionaire Julian Robertson has been making). Visa’s forward earnings multiple, based on expected earnings for the fiscal year ending in September 2014, is 19. However, the company has been performing well on both top and bottom lines.

Tiger Consumer Management initiated a position of 1.7 million shares in Liberty Global Inc. (NASDAQ:LBTYA). The $18 billion market cap cable TV, Internet, and phone company is a favorite of many hedge funds including Tiger Global Management, a fellow Tiger Cub fund (see more stocks Tiger Global was buying). While the earnings multiples are high at this time, Wall Street analysts are projecting high growth for the next several years and their trajectory brings the five-year PEG ratio down to 1.

Disclosure: I own no shares of any stocks mentioned in this article.

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

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

6 Ways 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

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!