The Highest-Earning Hedge Fund Manager in 2015 Reveals His Top Stock Picks for Q2

#3. Visa Inc. (NYSE:V)

 – Number of shares owned by Citadel (as of March 31): 4.31 Million

 – Value of Citadel’s holding (as of March 31): $329.65 Million

The Chicago-based investment firm was bullish on Visa Inc. (NYSE:V) in the first quarter of this year, as Citadel increased its Visa stake by 41% quarter-over-quarter. The upped stake, which comprises 4.31 million shares, was valued at $329.65 million on March 31. The shares of the credit card company have been weighed down recently by a lawsuit filed by retail giant Wal-Mart Stores Inc. (NYSE:WMT) over Visa’s chip-enabled debit cards. The Arkansas-based discount retailer claims that Visa insists Wal-Mart allow customers to use signatures instead of personal identification numbers (PINs) to verify debit card transactions. The usage of PINs is considered more secure, but Visa argues that customers prefer the other transaction method. The lawsuit alleges that Visa earns more money from signature-based transactions than from those using PINs. Visa shares are 1% in the red for the year. Ken Fisher’s Fisher Asset Management reported ownership of 14.79 million shares of Visa Inc. (NYSE:V) in its latest 13F filing.

#2. Home Depot Inc. (NYSE:HD)

 – Number of shares owned by Citadel (as of March 31): 2.69 Million

 – Value of Citadel’s holding (as of March 31): $359.55 Million

Citadel owns 2.69 million shares of Home Depot Inc. (NYSE:HD) as of the end of March, up by a hefty 62% quarter-over-quarter. The 2.69 million-share stake was worth $359.55 million at the end of March and constituted 0.45% of Citadel’s portfolio. Earlier this week, the world’s largest home improvement retailer based on net sales released its first quarter financial results, which beat analysts’ expectations. In addition, the company raised its bottom- and top-line estimates for the full 2016 year. Even so, Home Depot shares closed in the red on the day of the earnings release, as management told analysts that same-store sales growth dropped from 10.2% in February to 6.7% in March and then to 4.3% in April. The Atlanta-based company increased its fiscal 2016 revenue projection to annual growth of 6.3%, while comparable-store sales are anticipated to grow by 4.9%. Home Depot’s shares are flat year-to-date. Cliff Asness’ AQR Capital Management had 2.23 million shares of Home Depot Inc. (NYSE:HD) in its portfolio at the end of March.

#1. Facebook Inc. (NASDAQ:FB)

 – Number of shares owned by Citadel (as of March 31): 4.47 Million

 – Value of Citadel’s holding (as of March 31): $510.37 Million

Facebook Inc. (NASDAQ:FB) was the largest equity holding in Citadel’s ocean-sized pool of holdings at the end of March, accounting for 0.64% of the firm’s $79.25 billion portfolio. The Chicago-based asset manager upped its Facebook stake by roughly 95% during the first three months of 2016, to 4.47 million shares, which were valued at $510.37 million. Reportedly, the social media giant is currently testing its enterprise social network for businesses, known as “Facebook at work”, which may unlock a new revenue stream for the company in the near future. Facebook’s enterprise-focused platform, which is currently in beta mode, is being used by approximately 450 companies around the globe. As most small- and medium-scale companies may not have an existing platform to keep in touch with employees, “Facebook at work” may represent an extremely useful tool for them. Facebook’s stock has gained 12% since the start of 2016. Andreas Halvorsen’s Viking Global acquired a new stake of 20.13 million shares of Facebook Inc. (NASDAQ:FB) during the January-to-March period.

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