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

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

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

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!