Visa, Priceline, and More: Billionaire Thomas Steyer’s Top Services Stocks

Page 1 of 2

FARALLON CAPITALFarallon Capital Management is one of the largest hedge funds in the world, and the combination of size, good returns, and a long operating history- the fund was founded in 1986- has helped make founder and manager Thomas Steyer a billionaire. In November, Farallon filed its 13F with the SEC and therefore reported a number of its long equity positions as of the end of the third quarter (see the list of Farallon’s stock picks). Here are the five services stocks that Steyer’s fund had the largest positions by market value in at that time:

Visa Inc (NYSE:V) was the largest of Farallon’s services stock picks. The credit card company has been reporting strong growth in both revenue and earnings, and its market performance has been good as well: the stock is up over 50% from its levels a year ago. Visa trades at 21 times expected earnings for the current fiscal year (ending in September 2013) with analysts seeing strong growth this year and next. Visa led our list of the ten services stocks hedge funds love (see the full rankings), though our impression is that credit card companies like American Express and Discover are cheaper enough to be worth considering.

Farallon increased its holdings of Priceline.com Inc (NASDAQ:PCLN) by 82% to a total of about 250,000 shares. Priceline is in the process of purchasing Kayak, which will further establish the company as the market leader in online travel services. It has also been growing well, despite its size: last quarter revenue increased 17% and earnings were up 27% compared to the same period in 2011. Billionaire Stephen Mandel’s Lone Pine Capital reported owning 1.4 million shares of Priceline at the end of September, making it the largest position by market value in the fund’s 13F portfolio (check out Mandel’s stock picks). The forward P/E is 17 and even if Priceline slightly misses that mark it could still be characterized as “growth at a reasonable price.”

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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!