American International Group Inc (AIG): Billionaire Bruce Kovner Is Very, Very Bullish. Who Else Does He Like?

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Wells Fargo & Co (NYSE:WFC) has been another of Caxton’s long-term holdings, with the most recent filing disclosing ownership of 1.6 million shares. Unlike many other large banks- including a couple we’ll discuss here- Wells Fargo & Co (NYSE:WFC) is valued at a premium to the book value of its equity with a P/B ratio of 1.4. However, the bank’s return on its assets has been good and as a result the trailing earnings multiple is 11. A Buffett favorite, Wells Fargo & Co (NYSE:WFC) was also one of billionaire Ken Fisher’s Fisher Asset Management’s ten largest single-stock holdings by market value at the beginning of January (find Fisher’s favorite stocks).

According to the 13F, the fund owned 1.1 million shares of JPMorgan Chase & Co. (NYSE:JPM). Market prices place this megabank right about at book value, and the trailing and forward P/Es are 9 and 8 respectively. With a small increase in revenue in the first quarter of 2013 versus a year earlier (earnings were up at a higher rate, though high net income growth from improved net margins is probably not sustainable) we think it is a potential value play. Moore Global, managed by billionaire Louis Bacon, increased its stake in JPMorgan Chase & Co. (NYSE:JPM) Chase by 33% between October and December (research more stocks Bacon was buying).

Caxton has been selling shares of Citigroup Inc (NYSE:C) on net over the past couple of years, but still had about 500,000 shares at the beginning of this year. The stock is cheaper than book (Citigroup Inc (NYSE:C)’s P/B ratio is 0.8) though the flip side here is that the bank is dependent on meeting analyst growth expectations in order to make sense from an earnings basis. Revenue did grow 10% in its most recent quarter compared to the same period in the previous year. Billionaire George Soros has been another notable investor with a large position in Citigroup Inc (NYSE:C) (see more stocks Soros likes).

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

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