Cliffs Natural Resources Inc (CLF), Nuance Communications Inc. (NUAN): Here’s What This Billion-Dollar Market Wizard Has Been Buying

The stock’s low valuation, with a forward P/E near 13 comparing favorably with its five-year average P/E of 42, makes it look attractive, but some doubt how quickly Nuance Communications Inc. (NASDAQ:NUAN) can grow. Notable investor Carl Icahn sees potential in it, though, perhaps intrigued by its potential in the health-care field, helping doctors create or update electronic health records.

Finally, Tudor Investment’s biggest closed positions included Apple Inc. (NASDAQ:AAPL) and the iShares MSCI Emerging Market Index Fund ETF. Other closed positions of interest include Frontier Communications Corp (NASDAQ:FTR) and BGC Partners, Inc. (NASDAQ:BGCP). Frontier Communications Corp (NASDAQ:FTR), recently yielding more than 9%, is a rural telecom specialist. It’s weighed down with considerable debt, and is shifting its business focus, favoring business customers more. It’s been posting declining revenue lately, though, and its credit rating took a hit in recent months, also. Some worry that its acquisition of landline business from Verizon Communications Inc. (NYSE:VZ) may not be as lucrative as expected, and fear a dividend cut.

BGC Partners, Inc. (NASDAQ:BGCP), a brokerage mainly serving the wholesale and real-estate markets, has been diversifying its business by expanding more into commercial real estate. It also offers a huge dividend, recently yielding more than 8% — but its payout currently exceeds its earnings, suggesting that it may not be sustainable unless something changes for the better. The stock surged 42% in April, on news of the company selling its electronic Treasury trading platform to NASDAQ OMX Group, Inc. (NASDAQ:NDAQ).

We should never blindly copy any investor’s moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing, and 13F forms can be great places to find intriguing candidates for our portfolios.

The article Here’s What This Billion-Dollar Market Wizard Has Been Buying originally appeared on Fool.com is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Apple and Verizon Communications. The Motley Fool recommends Apple and Nuance Communications and owns shares of Apple, InvenSense, and Nuance Communications.

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