MGM Resorts International (MGM), American International Group, Inc. (AIG) & 1 Multi-Billion Dollar Fund To Watch

Sterling Financial Corporation (NASDAQ:STSA) is in fourth place, with the fund substantially decreasing its holdings by 490,000 to 1,000,000 during the first quarter of 2013. Sterling Financial Corporation (NASDAQ:STSA) trades at the lowest trailing P/S in its industry grouping at 3.61, and Wall Street expects an upside of 13-14% on the high side, assuming that earnings and revenue targets can be met over the next few quarters. Like Dynegy Inc. (NYSE:DYN), Sterling Financial Corporation (NASDAQ:STSA) offers something that the rest of King Street’s top picks don’t. In this case, it is strong value, and a recent 33% dividend boost—to a yield of 3.75%—is the icing on Sterling Financial Corporation (NASDAQ:STSA)’s proverbial cake.

Lastly King Street Capital was also bullish on fast food giant Burger King Worldwide Inc (NYSE:BKW), buying 726,400 shares worth $13.874 million during the quarter. Burger King Worldwide Inc (NYSE:BKW) has the fourth highest P/E ratio in its industry grouping at 189.40,thoughthe forward P/Eis much lower at 20.96 times year-ahead EPS estimates. Up double-digit percentages year-to-date, bulls have been rewarded by broader gains in the restaurant space, but for any investor banking on a continued economic recovery, Burger King Worldwide Inc (NYSE:BKW) offers a solid play at a surprisingly cheap forward valuation.

Final thoughts

King Streetsubstantially restructured its 13F holdings during thefirst quarter, and from Burger King Worldwide Inc (NYSE:BKW) to American International Group, Inc. (NYSE:AIG), each of these plays offers a diverse look into its specific sector. Like the food operator and the insurance giant, Sterling Financial also offers solid value, while MGM Resorts International (NYSE:MGM) and Dynegy Inc. (NYSE:DYN) each offer momentum opportunities in their own right.

Disclosure: none