Billionaire Israel Englander’s New Stock Picks Include Aetna Inc. (AET)

According to the 13F, Millennium owned about 920,000 shares of Companhia de Bebidas das Americas (ADR) (NYSE:ABV) at the beginning of April. Bebidas das Americas, or “Ambev”, distributes alcoholic beverages and soft drinks in Latin America, with distribution agreements with both Pepsico and Anheuser-Busch Inbev. At a market capitalization of $116 billion, the stock carries trailing and forward P/Es of 22 and 18 respectively. However, as with Expeditors recent financial performance has been sluggish and certainly not high enough to make Ambev a buy from our perspective.

Englander and his team reported a stake of about 530,000 shares in General Dynamics Corporation (NYSE:GD), a manufacturer of aircraft, warships, and military vehicles. General Dynamics Corporation (NYSE:GD) trades at 11 times forward earnings estimates, likely reflecting some concern from investors that cuts in U.S. military spending will hurt the company’s business. Revenue was in fact down slightly in its most recent quarter compared to the same period in the previous year, though General Dynamics did manage to cut costs as well and as a result earnings came in 1% higher.

We’ve mentioned that Expeditors and Ambev look a bit pricy to us right now, considering that their respective businesses have not been doing so well. We’re also not sure how much opportunity there is for retail investors in Virgin Media. That leaves General Dynamics and Aetna Inc. (NYSE:AET), which are similar in that there is political/regulatory risk involved and recent results have been mediocre, which have led to these stocks- as well as the rest of their industry- carrying low earnings multiples. It’s possible, then, that these companies or their peers could make for potential value plays.

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