Billionaire Julian Robertson’s Top 5 Stock Picks

3. Facebook, Inc. (NASDAQ: FB)

Value: $41,029,000
Change in Position Size: 4%
Percent of Julian Robertson’s 13F Portfolio: 9.3%

Mark Zuckerberg’s Facebook Inc., stands 8th on the list of billionaire Julian Robertson’s top 5 stock picks. The California-based company was among the best performers on the S&P 500 on Friday February 26, 2021 as it soared 1.15% and settled at $257.62 from Thursday’s closing of $254.69 per share. FB currently has a market capitalization worth $733.6 billion and it delivered a 33.85% return in the past 12 months.

As of the end of the fourth quarter, 242 hedge funds in Insider Monkey’s database of 887 funds held stakes in Facebook Inc., compared to 230 funds in the third quarter. SB Management is the biggest stakeholder in the company, with 12 million shares, worth $3.2 billion. Facebook ranks 3rd in our list of the 30 Most Popular Stocks Among Hedge Funds: 2020 Q4 Rankings.

Kinsman Oak Capital Partners, in their Q4 2020 Investor Letter, said that they have a controversial view on Facebook, Inc. (NASDAQ: FB) because they see it as a ‘not so expensive’ company.

Here is what Kinsman Oak Capital Partners has to say about Facebook, Inc. in their Q4 2020 investor letter:

“Our view on Facebook (FB) may be somewhat controversial. The bear case for FB boils down to antitrust risk and valuation. Facebook, although to a lesser degree, is a relative value bargain as well. We believe the company possesses an element of platform risk that Alphabet does not but, compared to the rest of the market, the stock still seems undervalued. We compared Facebook to the Russell 2000, an index full of cyclical businesses that are considered no-brainers at the beginning of a recovery and popular re-opening stocks that are poised to go higher after the vaccine is distributed (Appendix E). Facebook is significantly cheaper, growing faster, has a larger economic moat, superior margin profile, and requires less capex.

In short, we believe the obfuscated earnings power makes Facebook appear more expensive than it really is.”