2Q2015: The Billionaires’ Largest Equity Positions

A snapshot of the billionaires’ top stocks this quarter.

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Warren Buffett

The largest position in Warren Buffett equity portfolio is Wells Fargo (NYSE:WFC) with a 23.88% allocation. Last week, the stock traded up, after the bank announced growth plans through new acquisitions. If the interest rates increase later this year, Wells Fargo and Buffett will benefit. Interest rates hikes play a major role in increasing banks’ income.

Bruce Berkowitz

Bruce Berkowitz is also bullish on financials. AIG (NYSE:AIG) accounts for 23.83% of his portfolio. Leon Cooperman, Larry Robbins and Dan Loeb also hold AIG stock, but John Paulson has the largest AIG allocation of 14.60% after Bruce Berkowitz.

In 2008, AIG was involved in one of the most dramatic episodes of the financial crisis, when the government took a controlling stake in the company in exchange for an $85 billions loan. In 2011, Maurice Greenberg, the former AIG CEO brought a class-action lawsuit against the government. Yesterday, in an unlikely victory for Greenberg, a judge ruled that the government takeover violated the law.

Carl Icahn

Carl Icahn’s favorite remains Apple (NYSE:AAPL). The stock represents 20.48% of the billionaire’s portfolio. Icahn is well known for being bullish on the stock. In a May 18th open letter to Apple, Icahn notes that the company is undervalued and encouraged its CEO to repurchase more of the stock.

George Soros

Alibaba Group (NYSE:BABA) is the largest equity position in Soros’ portfolio with a 3.64% allocation. The billionaire initiated the position in the third quarter of last year at an average price of $90.67. Alibaba is also Julian Robertson’s top position. But not everyone is still bullish on the stock. As of last quarter, Dan Loeb sold all his Alibaba shares.

Jorge Lemann

The media conglomerate Twenty-First Century Fox (NYSE:FOX) is Lemann’s highest equity position. The company is expected to move into an 80-story tower in downtown Manhattan by 2020. Last week, the stock traded up after details about the construction were revealed.

Ray Dalio

Almost 80% of Ray Dalio’s portfolio comprises of only three ETFs. The Vanguard Emerging Markets ETF (NYSE:VWO) is the top holding with an allocation of 35.67%. In Q4 2014, the billionaires increased his position by 5 million VWO shares. VWO is the largest emerging markets ETF by AUM with a low 0.15% expense ratio. Earlier this month, Vanguard announced plants to add onshore Chinese equities to the fund.

John Paulson

Shire Plc-Adr (NYSE:SHPG), a biopharmaceutical manufacturer takes the top position in Paulson’s equity portfolio with a 10.55% allocation. Shire allegedly made an offer of $18.9 billion for Actelion, a Switzerland based biotech company. Shire wants to position itself as a rare disease specialist and appears to move aggressively in that direction.

David Tepper

This quarter, General Motors (NYSE:GM) remains Appaloosa’s largest position with 10.06% allocation. GM is planning to re-enter the U.S medium-duty truck market in 2016 in a partnership with the Japanese truck manufacturer Isuzu Motors. Last quarter, the billionaires bought 12 million shares of GM. David Einhorn commented in his Q1 2015 Shareholders letter: “We decided to take another drive in General Motors Company and repurchased a fresh stake at $34.62 per share. We had held GM for about three years before selling it in early 2014, when we were disappointed with management’s earnings guidance. 2015 should be a better year for GM.”

Leon Cooperman

Similar to a few of his billionaire fellows, Leon Cooperman is bullish on healthcare. Actavis (NYSE:ACT), one of the leading drug makers by sales represents 4.43% of Cooperman’s portfolio. On Monday, Actavis announced that its name changed to Allergan, the Botox maker they acquired in March. In 1Q2015, the billionaires bought a total of 9 million Actavis shares.

Julian Robertson

Alibaba (NYSE:BABA) is Tiger Management top holding with an 8.8% allocation. The billionaires sold 11 million BABA shares last quarter. Those still invested in the stock – Robertson, Coleman, Soros and Steyer, are most likely happy with the recent news. Alibaba is expected to launch a movie streaming business for China in the next two months. The company’s head of digital entertainment announced:Our mission, the mission of all of Alibaba, is to redefine home entertainment. (…)Our goal is to become like HBO in the United States, to become like Netflix in the United States”.

Edward Lampert

Sears (NYSE:SRSC) represents almost half of Lampert’s equity portfolio. Our data shows he purchased the stock at an average price of $41.52. Sears shares fell around 11% percent last Wednesday as the company reported plans to sell part of its stores. The sell could leave investors with less value.

Wilbur Ross

Navigator Holdings (NYSE:NVGS), a liquefied gas carrier, represents more than half of Ross’ equity allocation or 51.94%. Ross fund has a $418M stake in Navigator, purchased at an average price of $40 per share. Recently, Navigator Holdings received a “Hold” rating from the eight ratings firms tracking the stock.

Daniel Loeb

A biotech investing guru, Dan Loeb continues to hold his Amgen (NYSE:AMGN). Loeb’s Third Point has a $2 billion stake in the company, purchased at an average price of $147.91. Amgen was Third Point’s biggest winner in 2014. In his 4Q2014 letter, Loeb described Amgen as “a hidden value as a hidden value situation where investor skepticism in three areas – R&D productivity, operating efficiency, and capital allocation – had obscured the company’s fundamental value.”

Steve Mandel

Priceline (NYSE:PCLN) is one of the billionaires’ favorite picks this quarter and Steve Madel’s top holding. David Tepper, Chase Coleman, and Thomas Steyer also own the stock. In the first quarter of the year, the investors bought 297K PCLN shares. Priceline posted strong first quarter results, signaling a healthy recovery in travel spending. With a strong presence in Europe, Priceline will benefit from a potential European recovery.

Marc Lasry

Avenue Capital’s top stock is Houghton Mifflin Harcourt (NYSE:HMHC), an education and training services provider. John Paulson also has a $726M stake acquired at an average price of $16.84 per share. In the last month, the stock rose 13.65%. Many Wall Street analysts praised the company.

Richard Chilton

With a 6.6% allocation, W R GRACE AND CO (NYSE:GRA) the Maryland–based chemical conglomerate, is Chilton’s top stock. Chilton purchased the stock at an average cost of $64.34 and in Q1 he added to the position.

Thomas Steyer

Steyer top holding is the biotech company Pharmacyclics Inc (NYSE:PCYC). His stake of 1.95M shares represents 7.27% of the billionaire’s portfolio. Pharmacyclics was acquired by AddVie this May in a $21B deal. “The companies’ shared expertise, combined with AbbVie’s broad late-stage oncology pipeline, has the potential to transform the cancer treatment landscape for hematological malignancies and improve patient outcomes and quality of life,said Richard Gonzalez, Chairman and CEO of AbbVie.

Nelson Peltz

The most recent 13Fs show that Nelson Peltz bought into E I Du Pont De Nemours & Company (NYSE:DD). Du Pont now accounts for 20.51% of Peltz’ portfolio. The Street rated E I du Pont de Nemours & Company as a “Buy” and notes: “The company’s strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, notable return on equity and expanding profit margins.”

Chase Coleman

Coleman almost tripled his JD COM INC (NYSE:JD) position bringing his portfolio allocation up to 6.74%. JD is the biggest online direct sales company in China, with a market cap of $50B. The JD stock gained over 60% since 2014.

Larry Robbins

With an allocation of 4.98%, Monsanto (NYSE:MON) is Larry Robbins’ number one holding. George Soros, Richard Chilton and Ray Dalio also hold a stake in the company. As recently reported by the Monthly Fool, Monsanto is continuing its efforts to merge with Syngenta, its Swiss rival. The merger will strengthen Monsanto’s position as a leader provider of agricultural products worldwide.

David Einhorn

Although he reduced the position by 13% in Q1, the top stock in Einhor’s portfolio is Apple (NYSE:AAPL) with an allocation of 12%. In his most recent shareholders letter Einhorn wrote: “We believe that AAPL is a superior company that merits a premium multiple.” The billionaire is known for his bullishness on tech, and he now has over $3 billion invested in the tech sector alone.

Bill Ackman

Valeant Pharmaceuticals (NYSE:VRX) represents roughly a quarter of Bill Ackman’s equity portfolio. This March, Ackman made a $3.3 billions bet on Valeant, which accounts for 5% of the company. Reuters reported: “the fund would take a passive approach to Valeant, instead of pressuring it to change management or pursue strategic options, as it does with most of its investments.” In one year, Valeant’s stock has risen by roughly 80%.

Do you want to keep track of the billionaires’ stocks? Check out the iBillionaire Index (IBLN). The iBillionaire Index is composed of the top U.S. equities in which the billionaires invested the most assets. Screen Shot 2015-06-16 at 1.30.04 PMThe information provided is based on regulatory SEC filings.

 

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