Hedge Funds Bought These Stocks Recently
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Insider Monkey) -- Hedge funds will disclose their end of first-quarter holdings next week, although we can still track hedge funds' transactions through Form 4, 13D and 13G filings. We don't get to see their entire portfolio in these filings, but we get to see recent transactions in their large positions. Here are the stocks hedge funds bought recently:
"As we evaluated Apple at $445 per share, some back���of���the���envelope math painted an intriguing picture. Due to its favorable working capital cycle and deferred revenue contribution, Apple has been churning out cash flow at close to 120% of earnings (actually 128% in FY2012). Looking forward to CY2012, that rate suggests cash flow in excess of $50 per share in 2012. Ignoring repatriation tax for a moment, at $445 per share less $104 per share in net cash, we were creating Apple at 6���7x CY2012 free cash flow. Looking toward year���end 2012, with over $150 per share in net cash, Apple's multiple dropped to 5���6x CY2012 free cash flow. As a result, we believed we were buying in with a healthy margin of safety, a likely cash return catalyst and a favorable product cycle. This strong cash position and cash flow made the prospect of a cash return strategy very likely. Even allowing for a healthy sense of skepticism, Apple's close to $100 billion of net cash is greater than that of Microsoft, Google, Facebook and Nokia combined."
Howard Marks' Oaktree Capital
Barnes & Noble