A Look at Billionaire Leon Cooperman’s Five Cheapest Stock Picks

#3 Chimera Investment Corporation (NYSE:CIM)

Forward P/E Ratio 2016 (Omega Advisors’ Estimate): 7.1

Omega Advisors held an ownership stake of 14.13 million shares in Chimera Investment Corporation (NYSE:CIM) at the end of June, which represented 3.09% of the hedge fund’s portfolio. The recently-disclosed investor letter reveals that Leon Cooperman’s stake in the company accounts for 2.3% of the firm’s assets, but these percentages are not comparable as they may take into account different values as numerators. The company has seen its stock decline 11% year-to-date, which currently trades at a P/E ratio of 7.1, significantly below the median of 18.41 for the S&P 500. The specialty financial company also pays out an annualized dividend of $1.92, providing a current annualized dividend yield of 13.52%. Israel Englander’s Millennium Management acquired a 4 million-share stake in Chimera Investment Corporation (NYSE:CIM) during the second quarter.

#2 AerCap Holdings N.V. (NYSE:AER)

Forward P/E Ratio 2016 (Omega Advisors’ Estimate): 6.3

AerCap Holdings N.V. (NYSE:AER) is the fourth-largest position of Leon Cooperman’s Omega Advisors as of October 16, accounting for 3.0% of its assets. This holding represented the second-largest holding of this hedge fund at the end the June quarter, but lost a few spots because of Cooperman’s new portfolio addition and his bullish move on Alphabet Inc. (NASDAQ:GOOGL). The aircraft leasing company revealed its third-quarter business transactions prior to disclosing its earnings report on November 10. The company signed lease agreements for 46 aircrafts, purchased seven aircrafts, and executed sale and part-out transactions for 17 aircrafts. However, it remains to see to what extent these deals assisted the company in delivering strong third-quarter financial results. Considering the stock’s forward P/E ratio of 6.3, one may claim that the shares of the aircraft leasing company are trading at a bargain price at the moment. Ken Griffin’s Citadel Investment Group owned 6.88 million shares of AerCap Holdings N.V. (NYSE:AER) at the end of June.

#1 Navient Corp (NASDAQ:NAVI)

Forward P/E Ratio 2016 (Estimate of Omega Advisors): 5.7

Navient Corp (NASDAQ:NAVI) represents the cheapest stock among Omega Advisors’ 25 stock picks disclosed in the aforementioned letter, as the investment firm assigned it a forward P/E ratio of 5.7 for 2016. This holding accounts for 1.8% of the hedge fund’s assets as of October 16. Let us remind you that Leon Cooperman’s firm reported owning 7.73 million shares in the loan management, servicing and asset recovery company through the 13F filing for the second quarter. Earlier today, the company announced a fourth-quarter dividend of $0.16 per share, which provides a current dividend yield of 4.64%. The shares of Navient declined 37% during the September quarter, but have advanced 23% since the beginning of the current quarter. Cliff Asness’ AQR Capital Management held 6.62 million shares of Navient Corp (NASDAQ:NAVI) on June 30.

Disclosure: None