Billionaires Robertson and Einhorn Love These 6 Stocks

In our series of analyzing common stock positions of hedge fund billionaires, Julian Robertson’s Tiger Management and David Einhorn’s Greenlight Capital have common interest in six stocks along with other similar positions. These stocks include Apple Inc. (NASDAQ:AAPL), IAC/InterActiveCorp (NASDAQ:IACI), Santander Consumer USA Holdings Inc (NYSE:SC), NorthStar Asset Management Group Inc (NYSE:NSAM), Micron Technology, Inc. (NASDAQ:MU), and Marvell Technology Group Ltd. (NASDAQ:MRVL). Both of these billionaires are known for their expertise in hedge fund industry where Robertson is a living legend and Einhorn has come out to be among the smartest long/short equity investors of the past decade.

However, we don’t just track the latest moves of funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testing in August 2012, the strategy worked brilliantly, outperforming the market every year and returning 145%, which is more than 85 percentage points higher than the returns of the S&P 500 ETF (SPY) (check our our research).

Robertson and Einhorn have shown interest in Apple Inc. (NASDAQ:AAPL) whose shares have improved 13.86% year-to-date. Julian Robertson’s Tiger Management holds 324,500 shares of the iPhone maker valued at $40.38 million whereas Einhorn’s Greenlight Capital has its largest stock investment in Apple Inc. with 7.44 million shares valued at $925.41 million. Apple Inc. (NASDAQ:AAPL) is all set to launch Apple Music streaming service with three-month trial period and paid subscription afterwards. However, its competitors are also gearing up for the launch as Google Inc (NASDAQ:GOOGL) released Google Music with radio stations against Apple’s music streaming service. Phill Gross & Robert Atchinson’s Adage Capital Management is another primary investor of the iPad-maker.

David Einhorn has reduced his stake in IAC/InterActiveCorp (NASDAQ:IACI) by 15% in the first quarter of 2015 and his current position includes 2.54 million shares valued at $171.69 million. Robertson owns 309,600 shares of the online media company with market value of $20.89 million. IAC/InterActiveCorp (NASDAQ:IACI) has had an excellent run in 2015 with its shares improving 25.59% year-to-date. The media company reported 4% increase in its quarterly revenue during the first quarter of 2015; however, its net income dropped 26% to $26.4 million for the quarter. Christian Leone’s Luxor Capital Group is the largest stockholder of IAC/InterActiveCorp (NASDAQ:IACI) among the investment managers in our database. We should note that this stock was pitched at the Ira Sohn Conference this May.

Santander Consumer USA Holdings Inc (NYSE:SC) is one of the new stock positions initiated by Greenlight Capital during the first quarter of 2015 and the investment manager owns 2.17 million stocks with market value of $50.27 million. Tiger Management holds 585,000 shares of the consumer finance company with its stake valued at $13.54 million. The shares of Santander Consumer USA Holdings Inc (NYSE:SC) breached their 52-week high price last week and are currently trading at $26.34 with a dividend yield of 2.28%. The holding company has received consensus rating of “buy” from 15 rating firms with 12-month share price target of $26.48.  Billionaire Lee Ainslie’s Maverick Capital is among the major stockholders of Santander Consumer USA Holdings Inc (NYSE:SC).

Both investment managers have reduced their stake in NorthStar Asset Management Group Inc (NYSE:NSAM) during the first quarter of 2015. David Einhorn cut his investment in the asset management company by 30% with 3.18 million shares valued at $74.11 million. Similarly, Robertson has reduced his stake in the firm by 7% with reported ownership of 130,400 shares with market value of $3.04 million. NorthStar Realty Europe Corp, wholly owned subsidiary of Northstar Realty Finance Corp (NYSE:NRF), announced private offering of $300 million worth senior stock-settlable notes that are due in December 2016. The European subsidiary of Nortstar Realty Finance intends to use this for further acquisition of commercial real estate in Europe and similar corporate purposes. Robert Pitts’ Steadfast Capital Management has invested $337.11 million in NorthStar Asset Management Group Inc (NYSE:NSAM). This stock was pitched at Horbor Investment Conference in February.

Micron Technology, Inc. (NASDAQ:MU) is another company that attracted investments from both Greenlight Capital and Tiger Management despite a 32.03% decline in its share prices. In fact, both investors have increased their stakes in the semiconductor company with Greenlight Capital increasing its stake by 7% to 33.55 million shares valued at $910.20 million. Tiger Management’s current position in Micron Technology includes 58,500 shares with market value of $1.59 million. It has been a difficult year for Micron Technology, Inc. (NASDAQ:MU) and its shares are trading near their 52-week lower prices. The semiconductor device manufacturer is about to reports third quarter 2015 earnings after the closure of market on June 25, 2016. The analysts at Thompson Reuters are expecting consensus earnings per share of 57 cents over revenue of $3.91 billion. Andreas Halvorsen’s Viking Global and Seth Klarman’s Baupost Group maintain large positions in Micron Technology, Inc. (NASDAQ:MU). We covered Halvorsen’s views on Micron in this article.

Marvell Technology Group Ltd. (NASDAQ:MRVL) is another semiconductor company to have found place in the equity portfolios of Einhorn and Robertson. David Einhorn has lowered his stake in the company by 63% and his current position includes 9.05 million shares valued at $133.02 million. On the contrary, Julian Robertson initiated a new position in Marvell Technology Group Ltd. (NASDAQ:MRVL) with 46,100 shares having market value of $678,000. The semiconductor company has received investments from the likes of David E. Shaw’s D.E Shaw and Cliff Asness’ AQR Capital Management.

Disclosure: None