While it is impossible for average investors to devote the time and resources to stock selection that institutional investors can, a retail investor can achieve superior returns for his or her portfolio by simply mimicking some of the moves of those elite investors. At Insider Monkey, we cover over 800 funds and institutional investors as part of our small-cap strategy (see more details here). Among these 800 funds, we pay special attention to 58 funds which were started or are currently managed by individuals who, through their expertise in finance, have managed to become billionaires. Since most of these funds boast a lengthy track record of outperforming the broader market, we consistently track every move they make, including the stocks they are collectively losing faith in. Having said that, in this article we will analyze the top five stocks which were collectively sold by the billionaire investors in our database during the fourth quarter.
#5 Oracle Corporation (NYSE:ORCL)
– Billionaires with Long Positions (as of December 31): 10
– Value of Billionaires’ Holdings (as of December 31): $800.8 million
Let’s start with Oracle Corporation (NYSE:ORCL), which saw its ownership among the billionaire investors covered by us decline by half, while the aggregate value of those investors’ holdings in the stock decline by 27.2% during the fourth quarter. Shares of the company have declined by over 13% since last June, though they are trading up by 3.72% this year. Analysts feel that Oracle Corporation (NYSE:ORCL) is undervalued with it currently trading at a forward P/E at 13.39, especially when compared to its peers. Some analysts have proposed that to increase its valuation, the company should start focusing more on return on invested capital (ROIC). For its third quarter of fiscal year 2016, the Street expects Oracle Corporation to report EPS of $0.62 on revenue of $9.13 billion. Donald Yacktman‘s Yacktman Asset Management reduced its stake in Oracle Corporation (NYSE:ORCL) by 14% to 22.85 million shares during the fourth quarter.
#4 FedEx Corporation (NYSE:FDX)
– Billionaires with Long Positions (as of December 31): 8
– Value of Billionaires’ Holdings (as of December 31): $1.70 billion
Shares of FedEx Corporation (NYSE:FDX) rose gradually in during October and November, but gave up nearly all of those gains during December. Amid this period, the number of billionaire investors in our system with ownership of the stock fell by six, while the aggregate value of their holdings in it fell by $493 million. Though FedEx Corporation (NYSE:FDX)’s stock has recovered somewhat from the decline it suffered earlier this year, it’s still trading down by 3.71% year-to-date. Like Oracle Corporation, FedEx Corporation is also scheduled to report its latest quarterly financial results next month, with the consensus among analysts being for it to report EPS of $2.34 on revenue of $12.41 billion. On February 23, analysts at Morgan Stanley reiterated their ‘Equal Weight’ rating on the stock and $132 price target. Billionaire Ken Griffin‘s Citadel Investment Group reduced its stake in FedEx by 45% to 362,900 shares during the fourth quarter.