The filing disclosed ownership of 3.8 million shares of Capital One Financial Corp. (NYSE:COF), another new position for the fund. While net revenues have been increasing at Capital One, they have been outpaced by costs and as a result net income declined in the first quarter of 2013 versus a year earlier. Still, the trailing and forward P/Es of 12 and 10 respectively are low and so we’d want to learn more about the business. Billionaire and Tiger Cub Andreas Halvorsen’s Viking Global owned almost 11 million shares of Capital One at the beginning of April (find Halvorsen’s favorite stocks).
Rounding out our list of Maverick’s cheap stock picks was health insurer UnitedHealth Group Inc. (NYSE:UNH). Many health insurance companies feature low earnings multiples in the current market environment as investors worry about future federal regulations, and UnitedHealth is no exception with a trailing P/E of 13. Lower net margins have pulled down the company’s net income recently despite a decent rise in revenue. D.E. Shaw, a large hedge fund managed by billionaire David Shaw, more than doubled its holdings of UnitedHealth to a total of 3.2 million shares (research more stocks D.E. Shaw was buying).
Disclosure: I own no shares of any stocks mentioned in this article.