Billionaires Robertson and Einhorn Love These 6 Stocks

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In our series of analyzing common stock positions of hedge fund billionaires, Julian Robertson’s Tiger Management and David Einhorn’s Greenlight Capital have common interest in six stocks along with other similar positions. These stocks include Apple Inc. (NASDAQ:AAPL), IAC/InterActiveCorp (NASDAQ:IACI), Santander Consumer USA Holdings Inc (NYSE:SC), NorthStar Asset Management Group Inc (NYSE:NSAM), Micron Technology, Inc. (NASDAQ:MU), and Marvell Technology Group Ltd. (NASDAQ:MRVL). Both of these billionaires are known for their expertise in hedge fund industry where Robertson is a living legend and Einhorn has come out to be among the smartest long/short equity investors of the past decade.


However, we don’t just track the latest moves of funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testing in August 2012, the strategy worked brilliantly, outperforming the market every year and returning 145%, which is more than 85 percentage points higher than the returns of the S&P 500 ETF (SPY) (check our our research).

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Robertson and Einhorn have shown interest in Apple Inc. (NASDAQ:AAPL) whose shares have improved 13.86% year-to-date. Julian Robertson’s Tiger Management holds 324,500 shares of the iPhone maker valued at $40.38 million whereas Einhorn’s Greenlight Capital has its largest stock investment in Apple Inc. with 7.44 million shares valued at $925.41 million. Apple Inc. (NASDAQ:AAPL) is all set to launch Apple Music streaming service with three-month trial period and paid subscription afterwards. However, its competitors are also gearing up for the launch as Google Inc (NASDAQ:GOOGL) released Google Music with radio stations against Apple’s music streaming service. Phill Gross & Robert Atchinson’s Adage Capital Management is another primary investor of the iPad-maker.

David Einhorn has reduced his stake in IAC/InterActiveCorp (NASDAQ:IACI) by 15% in the first quarter of 2015 and his current position includes 2.54 million shares valued at $171.69 million. Robertson owns 309,600 shares of the online media company with market value of $20.89 million. IAC/InterActiveCorp (NASDAQ:IACI) has had an excellent run in 2015 with its shares improving 25.59% year-to-date. The media company reported 4% increase in its quarterly revenue during the first quarter of 2015; however, its net income dropped 26% to $26.4 million for the quarter. Christian Leone’s Luxor Capital Group is the largest stockholder of IAC/InterActiveCorp (NASDAQ:IACI) among the investment managers in our database. We should note that this stock was pitched at the Ira Sohn Conference this May.

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