Google Inc (GOOG), Priceline.com Inc (PCLN): Growth-Oriented Hedge Fund Focusing on These Stocks

Going forward, we’d note that although hedge funds’ interest in Priceline fell by 13% last quarter, the stock still fell 25th in terms of overall popularity, ahead of typical smart money stalwarts like Coca-Cola and Amazon. This sentiment is definitely worth taking into account when considering Priceline’s investment prospects, which are primarily attractive to growth-oriented investors. The Street’s EPS estimates–19% annually for the next five years–trump 89 of the 95 other S&P 500-listed services stocks.

Adobe Systems Incorporated (NASDAQ:ADBE) and Wynn Resorts, Limited (NASDAQ:WYNN), lastly, sit at No.’s 4 and 5 in Lord’s equity portfolio, rounding out his top five. The hedge fund manager increased his stake in Adobe by 33% last quarter, while he upped the size of his Wynn Resorts position by 13%. Interestingly, both stocks have similar levels of hedge fund interest, with the total number of bullish funds in the mid-thirties. Billionaires Ken Griffin and Israel Englander each hold Adobe and Wynn, giving Lord some pretty enviable company.

Like Priceline, the crux of this duo’s bullish thesis comes down to momentum rather than value, as each stock is expected to sport double-digit earnings growth over the next half-decade. While Adobe does not offer a dividend, Wynn’s yield of 3.4% places it No. 1 amongst its peers in the resorts & casinos industry, which is the proverbial icing on this cake.

Judging by the solid growth prospects and recent appreciation of each member of this “fab five,” it’s easy to understand that one of the main driving forces behind Christopher Lord and Criterion Capital’s philosophy is momentum, rather than value or income. For those who employ this particular strategy on a regular basis, this hedgie’s equity portfolio may be a good place to parse down the market when searching for new investment ideas.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Disclosure: none