Microsoft Corporation (MSFT), Tyco International plc (Ireland) Ordinary Share (TYC), Carnival Corporation (CCL): Edinburgh Partners’ Top 3 Picks for the Fourth Quarter

Edinburgh Partners large stake in Tyco International plc (Ireland) Ordinary Share (NYSE:TYC) could deliver some solid returns in 2015, as several analysts have indicated the stock is well positioned to perform well. Shareholders are already optimistic, following the company’s announcement of its acquisition of Industrial Safety Technologies, a gas and flame detection gear manufacturer. This latest purchase is expected to add around $140 million to the firm’s annual revenue. In addition to Edinburgh Partners, Doug Silverman and Alexander Klabin’s Senator Investment Group is also bullish regarding the Ireland-based company, holding a position of 5.3 million shares.

Whereas Microsoft and Tyco International were already amongst Edinburgh Partners’ top three picks by the end of the third quarter, Carnival Corporation (NYSE:CCL) went to the top during the fourth quarter. The hedge fund currently holds 2.88 million shares of the company, down from 2.96 million in the previous quarter. At the end of December, the stake was worth $131.25 million and represented around 14% of its equity portfolio. Since the fund added Carnival to its equity portfolio in the fourth quarter of 2012, the stock has gained around 20%. Furthermore, the company boasts solid future growth prospects, due to its leading position in the underpenetrated cruise industry. Considering its great performance during 2014 and the expected increase in the size of the cruise operators’ fleet in 2015, Edinburgh Partners’ bullish stance is more than justified. In addition to the Scotland-based hedge fund, Carnival Corporation (NYSE:CCL) is backed by Keer Neilson’s Platinum Asset Management, which holds a stake of 7.1 million shares in the company.

Disclosure: Pablo Erbar holds no position in any stocks or funds mentioned.