Billionaire Mason Hawkins’ Top Picks From Latest 13F Filing

#3 FedEx Corporation (NYSE:FDX)

Shares Owned by Southeastern Asset Management (as of December 31): 6.13 million

Value of Holding (as of December 31): $913.91 Million

Southeastern Asset Management reduced its stake in logistics behemoth FedEx Corporation (NYSE:FDX) during the fourth quarter. After having lost 18% during 2015, shares of FedEx Corporation (NYSE:FDX) have again fallen by 13.65% so far this year. Since e-commerce has been the major driver of the company’s growth in the past few years, some analysts raised concerns when Amazon.com, Inc. (NASDAQ:AMZN), one of FedEx’s largest customers, in its recent 10-K filing mentioned FedEx and other logistics companies as its competitors. However, analysts are still bullish on the company and have a consensus ‘Overweight’ rating and an average price target of $175.59. The company is scheduled to report its fiscal 2016 third quarter results next month and analysts’ estimate EPS of $2.35 on revenue of $12.41 billion. For the same quarter last year, it reported EPS of $2.01 on revenue of $11.70 billion.

Follow Fedex Corp (NYSE:FDX)

#2 Alphabet Inc (NASDAQ:GOOG)

Class C Shares Owned by Southeastern Asset Management (as of December 31): 1.21 million

Value of Holding (as of December 31): $918.28 Million

Amid a nearly 25% rise of Alphabet Inc (NASDAQ:GOOG)’s stock during the fourth quarter, Southeastern Asset Management reduced its stake by 5%. Shares of the company gained ground in anticipation of the fourth-quarter results, but, due to the turmoil in the global markets, the shares are trading down by nearly 8% year-to-date. Analysts continue to remain bullish on the stock, expecting that next year the worldwide digital ad spending will surpass TV for the first time and Alphabet Inc (NASDAQ:GOOG) being the dominant player in the market will benefit greatly from the development. Currently, 43 of the 51 analysts who cover the stock have a ‘Buy’ rating and the average price target amounts to $921.16. Andreas Halvorsen‘s Viking Global increased its stake in the company by 2% to 1.14 million shares during the fourth quarter.

#1 Level 3 Communications, Inc. (NYSE:LVLT)

Shares Owned by Southeastern Asset Management (as of December 31): 32.93 million

Value of Holding (as of December 31): $1.79 billion

Despite Southeastern Asset Management having reduced its stake in Level 3 Communications, Inc. (NYSE:LVLT) by 18% during the fourth quarter, the company still remained the fund’s top stock pick at the end of December and amassed over 16% of its equity portfolio value. Although the stock has been trading in the $45-$55 range for the most part in the last year, analysts consider that it has a potential to move higher. According to them, the company has everything going in its favor currently. Its free cash flow is expected to exceed $1 billion in 2016 and its EPS are projected to grow at double digit rates. In addition, analysts think that the company might go for an acquisition or launch a stock buyback soon. On January 16, analysts at Morgan Stanley upgraded the stock to ‘Overweight’ from ‘Equal Weight’ and raised their price target to $60 from $45. Billionaire George Soros‘ Soros Fund Management increased its stake in Level 3 Communications, Inc. (NYSE:LVLT) by 59% to 3.19 million shares during the October-December period.

Follow Level 3 Communications Inc (NYSE:LVLT)

Disclosure: None