Billionaire Leon Cooperman Likes These Healthcare and Tech Stocks

Alphabet Inc (NASDAQ:GOOGL) represented Omega’s top holding, equal to 4.4% of its assets. The fund disclosed a new stake containing 213,659 class A shares of the company in its last 13F filing for the second quarter. Alphabet Inc (NASDAQ:GOOGL), which has recently changed its name from Google and undergone a restructuring in order to better combine its operations, reported solid financial results for the third quarter last week. Omega estimates that the shares are trading at a 19.1 forward earnings multiple, which is above the S&P 500’s average, but taking into account the 21% growth rate estimated by the fund for the next three to five years, the stock is still attractive. Fisher Asset Management inched up its stake by 5% to 915,214 class A shares of Alphabet Inc (NASDAQ:GOOGL) during the third quarter and reported ownership of 523,585 class C shares, down by 5% on the quarter, as of the end of September.

Omega also revealed during the conference call that its holding in Motorola Solutions Inc (NYSE:MSI) amassed 2.3% of its assets, while as of the end of June, Omega owned 2.65 million shares. Motorola Solutions was one of Cooperman’s biggest winners, the stock registering a 19% growth during the third quarter, which offset the decline in the first six months of 2015. Among the funds we track, Motorola Solutions Inc (NYSE:MSI) lost some popularity during the second quarter, as the number of investors with long positions went down by seven to 31, but they held in aggregate over 24% of its outstanding stock. It’s not surprising that Cooperman and other investors are bullish on the stock, since it trades at a forward P/E of 13.9 and Omega predicts a 15% growth rate in the next three to five years. Billionaire Jeff Ubben’s ValueAct Capital is also bullish on Motorola Solutions Inc (NYSE:MSI), reporting ownership of 17.59 million shares as of the end of the second quarter.

Finally, Facebook Inc (NASDAQ:FB) ranked as Omega’s 24th-largest holding as of October 16, while in its last 13F filing, the fund revealed a new stake of 573,300 shares as of the end of June. Facebook’s stock has been on a steady upward move since the beginning of the year, gaining 31% year-to-date. The company is doing fairly well, posting solid monthly average user growth for the last several quarters. It is also successfully monetizing on its acquisitions of WhatsApp and Instagram, both of which ranked among the five most downloaded iPhone and iPad apps in the third quarter, according to a recent report from Sensor Tower (Messenger and Facebook led the top). However, at a forward P/E of 35.5, estimated by Omega, Facebook Inc (NASDAQ:FB)’s stock may seem a bit overvalued. Another shareholder of Facebook Inc (NASDAQ:FB) is Fisher Asset Management, which owns 311,106 shares as of the end of September.

Disclosure: none