Virgin Media Inc. (VMED), Tiffany & Co. (TIF): Billionaire Dan Loeb’s New Stock Picks From Q1

With Wall Street analysts expecting that trend to continue, B/E Aerospace Inc (NASDAQ:BEAV) carries a forward P/E of only 15 and a five-year PEG ratio of 0.8. We’re skeptical as to whether it is in fact a “growth at a reasonable price” stock, but it may be worth considering.

Loeb and his team bought 1.2 million shares of Anadarko Petroleum Corporation (NYSE:APC) during the first quarter of 2013. Earnings at the oil and gas company have been down- partly due, we’d imagine, to low natural gas prices which have stemmed from high supply- and while the sell-side is forecasting a recovery for Anadarko Petroleum Corporation (NYSE:APC) next year the forward earnings multiple of 17 isn’t that low compared to the company’s peers. We’d also note that at a beta of 2.4, Anadarko Petroleum Corporation (NYSE:APC)’s stock price tends to over exaggerate moves in broader market indices.

Rounding out our list of Third Point’s new stock picks is Thermo Fisher Scientific Inc. (NYSE:TMO). The medical instruments and diagnostics company has done well over the last year, with the stock rising by 70%. While this has been accompanied by rising earnings, quite a bit of the stock’s rally is in anticipation of future growth on the bottom line as shown by the trailing P/E of 26. Analysts are looking for improvements in earnings per share here, but we wouldn’t take those projections at face value as the core of an investment thesis.

Final Thoughts

It’s no secret that at Insider Monkey, we track the best picks of the best hedge funds. Looking at hedgies’ favorite equities via 13F filings is also a useful way to screen investment ideas, but further research should also be done. In Third Point’s equity portfolio, Thermo Fisher Scientific Inc. (NYSE:TMO) represents a nice healthcare-Obamacare play, Anadarko Petroleum Corporation (NYSE:APC) is a bet on natural gas’s bright future, B/E Aerospace Inc (NASDAQ:BEAV) is a bullish play in aerospace (jet propulsion is particularly strong at the moment), Tiffany & Co. (NYSE:TIF)’s future looks cloudy, but should materialize in an improving economy, and Virgin Media Inc. (NASDAQ:VMED) is a merg-arb strategy.

Disclosure: I own no shares of any stocks mentioned in this article.