Billionaire Louis Bacon’s Top 5 Stock Picks

4. Amazon.com (NASDAQ: AMZN)

The New York-based hedge fund has sold 30% of its Amazon (NASDAQ: AMZN) position during the third quarter to capitalize on the stunning share price rally. Despite that, Amazon accounted for 2.46% of the overall portfolio at the end of the September quarter. Shares of Amazon rose close to 67% in the last twelve months.

L1 Capital International Fund, which returned 5.1% for the third quarter, highlighted bullish aspects of Amazon in an investor’s letter. Here is what L1 Capital stated:

“Several investments in the technology sector were trimmed on valuation grounds with the proceeds used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe the current share price under‑appreciates:

– The consistency and longevity of Amazon’s growth potential in its key businesses;

– The importance of additional revenue streams such as advertising which are high margin and growing rapidly; and

– The strengthening barriers to competition and competitive advantages arising from Amazon’s stepped‑up investment in logistics and other infrastructure.”