Google Inc (GOOG) Is the New ‘Darling’ of Hedge Funds: Apple Inc. (AAPL), American International Group Inc (AIG)

Smartphone leadership

In terms of leadership in the smartphone market, Apple Inc. (NASDAQ:AAPL) remained the number one manufacturer in the United States with 37.8% while Google’s Android operating system remained in the top spot with 52.3%, based on the latest survey of comScore.

Globally, smartphone makers using Android operating system shipped 159.8 million devices in the 4Q of 2012, up from 85 million units while Apple’s iOS shipped 47.8 million, up from 37 million during the same period a year earlier, according to International Data Corporation (IDC). Android smartphone shipments grew by 88% and 29.2% for the iOS devices year-over-year.

Stock performance

Over the past year, Google’s stock generated outstanding returns at 38.53%. The company outperformed the S&P 500’s total returns at 15.75%. Apple Inc. (NASDAQ:AAPL)’s stock performance was a negative 19.64%. Google Inc (NASDAQ:GOOG)’s stock price is trading around $831 per share, up from its lowest level at $556 per share over the 52-week range. Apple’s stock is trading around $431 per share, down from its highest peak at $705 per share, but slightly higher from its lowest level at $419 per share over the past 52 weeks.

Many analysts and investors believe that the search engine giant has more opportunities to grow given its leadership in key areas of the internet business.

Meanwhile, American International Group Inc (NYSE:AIG), another stock favorite performed well, and its returns jumped by more than 40% over the past year. Bruce Berkowitz of Fairholme Funds is bullish on AIG. He is confident that his profit from the stock will increase four times. He argued that American International Group Inc (NYSE:AIG) is a global leader in the insurance industry with powerful franchises, valuable assets, and it is exceptionally cheap compared with peers at 0.56 price/book value. The stock price of the insurance giant climbed from its lowest level of approximately $27 to more than $39 per share within the 52-week range.

The article Google Is the New ‘Darling’ of Hedge Funds originally appeared on Fool.com and is written by Marivic Cabural.

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