A Look at Billionaire Cliff Asness’ Top Stock Picks

#3 Pfizer Inc. (NYSE:PFE)

Shares held (as of September 30): 16.92 million
Total Value (as of September 30): $531.35 million
Percent of Portfolio (as of September 30): 1.06%

Pfizer Inc. (NYSE:PFE) is one of the largest healthcare companies in the world. The company manufactures and markets numerous blockbuster drugs, including Lyrica, Celebrex, Zyvox, and Norvasc and has a pipeline of promising drug candidates, such as Palbociclib, PF-06290510, and PF-06425090, all of which have billion-dollar-a-year potential. Because the government grants exclusivity to patented drugs and many people can’t go with them, Pfizer has substantial pricing power and steady cash flows. Although some of Pfizer’s drug patents will expire in the coming years, management is addressing the issue with M&A. Pfizer recently announced that it is merging with Irish drug maker Allergan, the maker of Botox, various biosimilars, and more than 1,000 generics and branded OTC products, in a $160 billion deal. If antitrust agencies agree to the deal, Pfizer will lower its taxes substantially and increase its earnings per share growth rate.

#2 Microsoft Corporation (NASDAQ:MSFT)

Shares held (as of September 30): 12.4 million
Total Value (as of September 30): $548.92 million
Percent of Portfolio (as of September 30): 1.10%

Although it’s now a multi-platform world, with Android and iOS vying for consumer and developer attention in addition to Windows, Microsoft Corporation (NASDAQ:MSFT) is rapidly diversifying itself. The company launched Skype translator this year and should release a consumer version of HoloLens in the coming years. If HoloLens is anything like the media previews, Microsoft could have a must-have consumer product on its hands. Meanwhile, Microsoft Surface continues to make inroads with consumers, as Microsoft’s online tablet sales have eclipsed Apple’s online iPad sales. Shares of Microsoft are up 23.64% year-to-date.