According to Seeking Alpha Apple is the most
popular stock among hedge funds and billionaires, and it is performing
spectacularly. Despite Apple's successful performance hedge funds are
underperforming the market third year in a row. The reason is simple. Equity
hedge funds usually hedge around 50% of their long exposure. It just doesn't
make sense to compare them to the S&P 500 index which is 100% long.
So we came up with a
better way of illustrating hedge funds' true stock picking ability and
constructed an index that is 100% long. We launched the Insider Monkey
Billionaire Hedge Fund Index at the beginning of this year. The index is based
on the 13F disclosures of billionaire hedge fund managers and prominent
investors.
1. Apple is the most popular stock among billionaire fund
managers. More than 40% of the billionaires had a large position in Apple at
the end of June. Apple is also the most popular stock among other hedge fund
managers….
2. Google (GOOG) is the second most popular stock among
billionaire hedge fund managers. The stock gained 13.6% so far this year. We
are optimistic about Google as well. The stock's 2013 forward PE ratio is less
than 15. It is slightly more expensive than Apple but the stock is the
undisputed leader of the search business. It is expected to increase its
earnings by nearly 20% per year over the next few years. We expect that Google
will outperform the market over the next five years..
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