Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tiger Cub Philippe Laffont’s Top Stock Picks Include Apple Inc. (AAPL)

Coatue increased its stake in Apple Inc. (NASDAQ:AAPL) by 88% between January and March, closing the quarter with 1.2 million shares in its portfolio. During the first quarter of the year, Apple Inc. (NASDAQ:AAPL) regained its place as the most popular stock among hedge funds, which it had lost in late 2012 (find more of hedge funds’ favorite stocks). Currently Apple Inc. (NASDAQ:AAPL) is valued at only 11 times its trailing earnings, with a good deal of its market cap being in the form of cash. While net income has been declining, we would watch to see if the business can stabilize and make the stock a value play.

Liberty Global Inc. (NASDAQ:LBTYA), which recently merged with another of Laffont’s top picks, Virgin Media, also had a prime place in the 13F filing. Following a 65% rise in the stock price over the last year, analyst expectations for 2014 imply a forward P/E of 25; the sell-side expects considerable earnings growth over the next several years, and as a result the five-year PEG ratio is less than 1. There has been high short interest in Liberty Global Inc. (NASDAQ:LBTYA), though this is a common component of a merger arbitrage strategy.

Still, we would avoid Liberty Global Inc. (NASDAQ:LBTYA) at least for now. Equinix Inc (NASDAQ:EQIX) also seems a bit pricy at least going by recent earnings performance. We’ve mentioned that Apple Inc. (NASDAQ:AAPL) may be a bit uncertain at this time, but the cheapness of the stock in terms of trailing performance, as well as the large cash hoard, means that a good deal of bad news is already priced in. The media companies we’ve mentioned here, as well as their peers, are certainly not pure value plays but have been doing well recently and may be worth a closer look.

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

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!