Hedge Fund Manager Ricky Sandler’s Top Stock Picks Include Google Inc (GOOG)

CME Group Inc (NASDAQ:CME). The fund’s position in CME increased by over 400% to a total of 2.8 million shares. Recent financial performance at CME has not been good, with revenue and net income both down over 20% last quarter compared to the third quarter of 2011. Analyst expectations are for continued earnings decline, judging by the trailing and forward P/Es of 11 and 15, respectively. Renaissance Technologies, founded by billionaire Jim Simons, was also buying the stock last quarter (find more stocks Renaissance likes).

eBay Inc (NASDAQ:EBAY). Eminence owned 2.7 million shares of eBay. Billionaire Stephen Mandel’s Lone Pine Capital had cut its stake slightly but still had about 13 million shares in its own portfolio at the end of the quarter (check out Mandel’s favorite stocks). eBay trades at 17 times trailing earnings and has been turning in good earnings growth. The stock is up 59% in the last year.

Tyco International Ltd. (NYSE:TYC). Tyco’s last fiscal year ended in September, and the security and fire protection company is currently trading at a current-year P/E multiple of 16 based on analyst expectations and its market cap of $13 billion. Eminence reported owning 2 million shares of the stock. Citadel Investment Group, a fund managed by billionaire Ken Griffin, was another major shareholder (research more stock Griffin likes).

Thermo Fisher Scientific Inc. (NYSE:TMO). The laboratory instruments and equipment company rounded out Eminence’s five largest holdings by market value. It doesn’t look like a good value in terms of trailing earnings, but the forward P/E is only 12 and the business has seen recent growth on both the top and bottom lines. Thermo Fisher was one of Tiger Cub John Griffin’s Blue Ridge Capital’s top ten picks.