Billionaire Julian Robertson’s High Upside Potential Picks Include Citigroup Inc. (C)

Ocwen Financial Corporation (NYSE:OCN) was another high upside potential pick. The $5.6 billion market cap company services mortgage loans, including subprime residential loans, and has been quite acquisitive recently. It is up 160% in the last year, and while its trailing earnings numbers do not look particularly strong compared to its valuation the sell-side is bullish with the result being a forward P/E of 8 and a PEG ratio well below 1. Billionaire James Dinan’s York Capital Management initiated a position in Ocwen between January and March (research more stocks Dinan was buying).

According to the 13F, Robertson cut his stake in QUALCOMM, Inc. (NASDAQ:QCOM) by 14% but he still had a little over 270,000 shares in his portfolio at the beginning of April. Qualcomm carries trailing and forward earnings multiples of 18 and 13, respectively, and analyst expectations for continued growth imply a PEG ratio of 0.8. Indeed, both revenue and earnings from continuing operations were up about 20% or more in its most recent quarter compared to the same period in the previous year. Lone Pine Capital, managed by billionaire and Tiger Cub Stephen Mandel, was one major shareholder in Qualcomm (check out more stocks Mandel likes).

Robertson disclosed a new position in $7.7 billion market cap cruise liner Royal Caribbean Cruises Ltd. (NYSE:RCL). Business for Royal Caribbean hasn’t been that bad, considering events in the cruise line industry, and the stock is currently valued at 11 times forward earnings estimates even with the stock up 48% in the last year. We’d note that Royal Caribbean is highly dependent on the broader economy with a beta of 2.8. John Thaler’s JAT Capital Management also took a new position in the company, and was the largest shareholder out of the filers we track in our database.

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