Billionaire David Tepper’s 5 Stock Picks With The Most Upside Potential Including Apple Inc. (AAPL)

American International Group, Inc. (NYSE:AIG) was heavily bought by hedge funds last quarter, placing it on our list of the most popular stocks among hedge funds (see the full rankings). Tepper initiated a position in the stock between July and September. AIG carries a forward P/E of 10, and growth expectations imply a five-year PEG of 0.4. The insurer also looks like a good value from a book perspective, as it trades at only half the book value of its equity.

Other than a position in an ETF tracking the NASDAQ, Appaloosa’s largest 13F position was its roughly 520,000 shares of Apple Inc. (NASDAQ:AAPL). Apple was the most popular stock among hedge funds last quarter. While billionaire David Einhorn’s Greenlight Capital sold shares, it still owned 1.1 million shares at the end of the quarter and Apple was the fund’s largest holding (find Einhorn’s favorite stocks). The trailing and forward P/Es here are 12 and 9, respectively, as Wall Street analysts expect the tech company’s growth to continue to be strong while the market apparently doesn’t think net income can go any higher. The PEG ratio is 0.5, showing just how wide the gap is between different perspectives on Apple. We would put ourselves somewhere between these two views, expecting low growth over the next several years, and that makes Apple a buy from our point of view.