Yesterday GT Advanced Technologies (GTAT) declared bankruptcy, sending the stock down more than 90% in one day. It’s likely that 99% of everyone who read this news went on with their day thinking to themselves, “Thank goodness I didn’t own this stock.”

But the 1%, the smartest hedge funds, were getting ready to pull the trigger on one of the oldest and most powerful quantitative trading strategies around: buying a stock the day after it declares bankruptcy, then selling it at the close.

This strategy has been known by almost every hedge fund on the Street, including the billion-dollar-plus hedge fund I worked for back in 2002, when WorldCom filed one of the largest bankruptcies in history. The next day our fund loaded up on WorldCom stock, which was selling for pennies on the dollar, and we made over 120% in one day.

This bankruptcy trade works for two main reasons:

1) Short sellers buy their stock back (or cover immediately after a bankruptcy filing)
2) Distressed traders-hedge funds will buy bankrupt stocks because there is a possibility they can squeeze some money out of them during the bankruptcy process, especially if they own 5% or more (a controlling stake).

This powerful combination of huge buying with virtually little selling (because no one really sells a stock after it has declared bankruptcy and dropped 90%) usually pops the stock more than 100% the day after a company declares bankruptcy.

That is why GT Advanced Technologies is up 150% today on huge volume, and why many hedge fund traders are smiling while the rest of the public is left scratching their heads.

To find out more about what hedge funds are buying and the sophisticated strategies they use to make 100% or more returns go to Billionairesportfolio.com

Will Meade
President of Billionairesportfolio.com

When I first heard about this, I thought it was a joke: There is a start-up company, of course in San Francisco, that connects maids with people who need their home cleaned. Ok, I considered Merry Maids, which a lot of people use. But when I found out the company had received $38 million in venture capital financing and that the founder was in her 20s, with zero experience in the house-cleaning industry, I knew the apocalypse had come and the tech bubble had burst.

The company is called Homejoy, and it was founded by Adora Cheung, who has an undergraduate degree from Clemson University and a Masters from The University of Rochester; she started Homejoy right after graduate school.

Even more amazing, it seems Adora Cheung had no previous experience in the industry before she started Homejoy. However, in today’s world, where venture capitalists will throw money at any and every idea, this is not a huge surprise. Yet when a woman in her 20s without any real experience in her industry gets 38 million, you have to wonder what they are smoking in the Valley.

Even more bizarre, Adora admits she didn’t know how to clean a house before she started the company, so she went to a “maid boot camp.” And it gets even stranger: According to recent articles in The Washington Post, New York Magazine and International Business Times, Homejoy has used homeless people to clean houses. Imagine you come back from a hard day at work, and the poor guy whom you’ve been giving money to on the corner of your street is not only in your house, but he is cleaning your house. Wow!

But perhaps I am too cynical and should really be moving out to San Francisco to pitch venture capitalists on an online pest control company. I mean, if a 20something woman with zero experience in her industry can get $38 million from venture capitalists to hire homeless people to clean houses, maybe I am the fool for not grabbing the money while it’s hot.

But in reality, this is Pets.com, this is the end — sayonara, Silicon Valley. I only wish you could short privately held firms.

Will Meade
President of The Billionaires Portfolio

When high-quality stocks sell off for non-fundamental reasons, billionaire investors lick their chops.

As you probably know, Warren Buffett has made his fortune being “greedy when others are fearful.” Billionaire Jeffrey Ubben, of ValueAct Capital Management, has been quoted as saying, “As soon as a company falls out of bed, for whatever reason, we can go right to our old notes.” Ubben bought a $1 billion stake in 21st Century Fox when the stock fell last July, in reaction to Fox’s bid for Time Warner (TWX).

Billionaire Bill Ackman recently said in an investment letter that “minority stakes in high-quality businesses can be purchased in the public markets at a discount. These discounts principally arise because of two factors: shareholder disaffection with management, and the short-term nature of large amounts of retail and institutional investor capital which can overreact to negative short-term corporate or macro factors.”

Legendary billionaire activist Carl Icahn is another investor who likes to add to his positions after a correction or dip. He has added to his positions in both Nuance Communications and Navistar International over the past year.

Some investors take macro and news-driven dips as an opportunity to take companies private.

Jeff Smith’s $2.5 billion Starboard Value fund owns RealD (RLD) at an average cost of around $10.50. After this week’s broad market decline, he offered to take the company private at $12, a 28% premium for shareholders from yesterday’s share price.

Given the recent slide in broader stocks, I think we’ll find that the world’s best billionaire investors and hedge funds are using this opportunity to add to their losers. Here are four stocks that would fit the bill:

Hertz (HTZ) – Carl Icahn owns almost 9% of Hertz at an average cost of $28.50. The stock is selling at $24.00 today. That’s a 17% discount to what Icahn paid for his shares.

MeadWestvaco (MWV) – Starboard Value’s average cost in Mead is $43.50 a share. The stock is currently selling for around $40. According to their 13D filing, Starboard believes the stock could be worth $69 a share if MeadWestvaco management follows through with their restructuring plan. That would be a 72% return from Mead’s share price today.

Armstrong World Industries, Inc. (AWI): ValueAct Capital owns nearly 17% of this stock, though it’s down 10% in the past month. According to Barron’s, ValueAct has averaged a 59% return on stocks when they own a controlling stake. That compares to 9% for the S&P 500 over the same time period.

Apache Corp (APA) – Billionaire Barry Rosenstein of the activist hedge fund Jana Partners reported a $1 billion stake in Apache in July. The stock has dropped from $104 to under $90.

To learn more about the stocks owned by the world’s best billionaire investors, follow me at BillionairesPortfolio.com.

When the news broke on Friday that activist hedge fund Starboard Value had taken a position in Yahoo (YHOO) and was pushing for a Yahoo-AOL merger, many people were probably asking, “Who is Starboard Value?”

As I told Bloomberg on Friday, Starboard Value has one of the best track records of any hedge fund out there; they have been profitable on 85% of their activist campaigns since 2002.

Starboard also has produced some of the best risk-adjusted returns of any hedge fund in the industry, and they do the most exhaustive and comprehensive research of any activist investor I have ever followed.

Here is the entire Bloomberg article on Starboard Value, including my quotes about Starboard to Bloomberg’s top activist-investing reporter, Beth Jinks.

Will Meade
President of The Billionaires Portfolio


[Our post on Bill Ackman, below, was one of our most widely read stories on Forbes and Yahoo Finance.]

Billionaire investor Bill Ackman has one of the best investing track records in the world. When you add back fees, Ackman has returned 1,199% since starting his fund in 2004. That compares to 119% in the S&P 500 for the same period.

Of course, if you invested in his fund back in 2004, you had to pony up a huge initial amount, likely $5 million or more. You had to agree to remain invested in the fund for a specific period of time, likely three years at minimum. And you had to pay Mr. Ackman a big cut of that handsome cumulative return. With that, after Ackman has taken his cut throughout the past decade, investors who have been in his fund since day one sit with a cumulative return of 627%. They put all the money up, but they share in just a little more than half of the total profits generated on their cash during the past 10 years. Still, no one would argue with a seven-fold return over a decade. It’s outstanding.

In his recent letter to investors, Ackman explained that there is no need to pay him fees. He admits that following his portfolio is easy. He says “free riders” can follow him “with none of the costs or the illiquidity, and with all of the upside.” In plain English, this means you can piggyback his investments without paying him fees, without putting up a multi-million dollar minimum investment in his fund and without having your money locked up for three years.

How is this possible, you might ask? When Ackman’s fund, Pershing Square Capital Management, takes a stake of 5% or more in a company, he is required to notify the SEC within 10 days, through a public disclosure filing called a Schedule 13D. And then, on a quarterly basis, Ackman is required to file form 13F with the SEC. This filing discloses all his fund’s positions. Ackman says, looking back, in 87% of the activist campaigns they’ve launched, the public could have bought the stocks at a “bargain price” even the day after he made his public filing.

While Ackman is one of the best-performing investors on the planet, his portfolio might be one of the easiest to replicate. His fund holds just six positions.

Here’s a look at the holdings of Ackman’s $12 billion Pershing Square fund as of its last filing:

Allergan AGN +0.33% (AGN) – AGN represents 39% of his portfolio. He has a nearly $5 billion stake in the company.

Air Products & Chemicals APD +0.89% (APD) – APD represents 21% of his portfolio. He has a $2.6 billion stake.

Canadian Pacific Rail (CP) – CP represents 20% of his portfolio. He has a $2.5 billion stake.

Burger King Worldwide (BKW) – BKW represents 8% of his portfolio. He has a stake worth $1 billion.

Platform Specialty Products Corp (PAH) – PAH represents 7% of his portfolio. He has a stake worth nearly $1 billion.

The Howard Hughes Corporation (HHC) – HHC represents 4% of his portfolio. He has a stake of $563 million.

Ackman has 80% of his fund’s money in just three stocks. That shows extraordinary conviction, and it also means he can’t afford to lose. That conviction and confidence is present only because he has the ability to gain control of, and influence on, the companies he invests in.

Bryan Rich
Co-Founder of The Billionaires Portfolio

Buffett’s Berkshire Hathaway (BRK-A, BRK-B) is back on top again; it has has returned 18.2% year to date in 2014, double the return of the S&P 500, and better than 99% of all domestic equity mutual funds on the planet.

What’s even more amazing is that, between 1980 and 2003, Buffett returned an incredible 40% a year.

That turns $10,000 into an incredible $32.1 million, and $100,000 into $320 million.

Buffett achieved this using a technique recently divulged in two academic papers. One came out of a major Ivy League university. Another was authored by two professors from a top public business school. In both papers, the researchers analyzed all of Warren Buffett’s holdings over the past 35 years.

These academic papers are very long, 50 pages each. But I have summarized the key points from each in simple enough terms that anyone, even a novice, could understand it.

Buffett, due to his incredible size now, will never be able to put up 40% years again. But an individual investor can, and should. Warren Buffett has said it himself. In an interview with BusinessWeek he said: “If I was running $1 million today, or $10 million for that matter….. I could make you 50% a year… No, I know I could. I guarantee that.”

Follow our blog for more details on this paper.

Will Meade
President of The Billionaires Portfolio

The secret of the hedge fund industry is that the best-performing funds are nearly always the newest — and usually the smallest. These are great funds to piggyback, as they are structured to perform in any market condition, and they tend to put up big numbers.

Sure, everyone these days has heard of Carl Icahn, George Soros, even folks such as David Einhorn. But how many people have heard of Joseph Edelman? You may be surprised to hear he runs the best-performing hedge fund in the world today: Perceptive Advisors.

Perceptive has returned an incredible 42% annualized since 1999. That means $10,000 invested in this hedge fund at its inception would be worth an incredible $1.3 million dollars today.

You’re probably saying, “Sign me up!” Well, unfortunately, the SEC has made hedge funds such as this available only to the super rich. To invest in a fund such as Perceptive Advisors, you have to meet accredited investor criteria, which means you must have at least $1 million in investable assets or an earned income of more than $200,000 ($300,000 with a spouse) over the past two years. Even if you fit the profile of an accredited investor, funds like Perceptive tend to have very high minimums ($5 million or more). Furthermore, Perceptive charges a hefty 2% management fee and 25% performance fee to investors.

So what do you do?

This has been an issue facing the broad investing public for a long time. The deck is stacked squarely against the average investor. Rich investors have access to good strategies; average investors get stuck with dog-meat mutual funds and stock-tip hype perpetuated through the media.

But don’t worry: If you’re reading this note, you have an alternative. We are filling this void. We are pioneering a change to the one-sided model that has driven Wall Street forever. They’ve given you big losses in bad years, and only a fraction of the returns in good years. In short, the Wall Street model is set up to give you all the risk, and they get the lion’s share of the return.

Wealthy, sophisticated investors don’t accept that treatment. Nor should you.

That’s why my partner and I have used the power of the Internet to design a new model; we give average investors across the world access to sophisticated hedge fund strategies and analysis. Our Billionaire’s Portfolio is the only service in the world that gives the average person an opportunity to co-invest with the world’s greatest billionaire investors and hedge funds including Perceptive Advisors. It’s a concept we call piggyback investing. This has proven so groundbreaking that Barron’s recently ran a feature piece about us in their Electronic Investor Column.

Furthermore, we know this system works; in 2013 we piggybacked three different top-performing hedge funds to gains of 260%, 220% and 110%. Already this year we have piggybacked one of the best-performing hedge funds to a 72% gain, 10 times more than what the S&P has returned this year. Furthermore, this stock was the top-performing stock in all of the S&P 500 this year.

Perceptive Advisors is the perfect hedge fund to use our groundbreaking piggybacking concept on. Perceptive specializes in taking big positions in small-cap biotech stocks, which can double, triple or even go up 1,000% in a year. Joseph Edelman is one of the most seasoned biotech investors on the planet. He employs numerous analysts, all with life-science backgrounds and many with PhDs, from the world’s top schools, including Princeton and Harvard.

Perceptive is essentially a biotech “think tank,” and they spend millions of dollars on research before they make an investment in a stock. That is why they are so good, and why so many of the stocks they have owned in the history of their fund have returned 200%, 300%, even 1000% in less than a year.

Last year Perceptive returned 65%, doubling the S&P 500’s return; they owned four stocks in their portfolio that went up more than 500%.

Biotech stocks are event driven, meaning they move up or down on news, such as clinical trial data and FDA approvals. They have little correlation to the overall stock market or the economy, and that is why funds such as Perceptive made money in 2002 and 2011, when the stock market was down double digits.

After the recent biotech selloff, there may be no better time to piggyback one of Perceptive’s small-cap biotech stocks.

Will Meade
President of The Billionaires Portfolio


Bill Ackman, in his most recent quarterly letter to his investors, just divulged a secret we have been telling our subscribers for almost three years now: If you want to get rich, piggybacking the trades of the world’s best billionaire investors and hedge funds could help you attain this goal.

Ackman stated the following in his most recent quarterly letter to his investors: “In 26 out of 30 of our activist commitments, the day-after price was still a bargain versus the ultimate price achieved from our involvement with the company.”

This means if you bought every stock Bill Ackman bought the day after it was announced, you would have made money on 26 out of 30 stocks (87%). More important, you would have made 21 times your money. That turns $100,000 into $2.1 million, or $50,000 into more than $1 million.

Will Meade
President of The Billionaires Portfolio


Over the past week, I received hundreds of emails concerning Carl Icahn’s announcement that he took an 8% position in Hertz (HTZ). We know Icahn has already publicly stated he wants to actively engage with Hertz management and its CEO, but there has been no word about Icahn pushing Hertz to merge or sell itself.

Here is why: First, regulators would never approve a Hertz-Avis merger. The two entities represent too large a share of the industry. It would essentially be a monopoly. So a merger with Avis isn’t happening — at least in my opinion.

Though, given the quick 25% run up in Family Dollar (FDO) last month after Icahn forced a merger with Dollar Tree (DLTR), it’s easy to see why investors are hoping for a similar result. Clearly, people don’t want to miss out on the next FDO. On that note, you can read some great analysis of the Family Dollar deal, where my partner and I predicted the merger and picked the bottom in Family Dollar stock (read that here).

But again, this is not going to happen with Hertz. Icahn and numerous other investors are long Hertz. Hertz is actually one of the most popular stocks owned by top billionaire hedge fund managers, because it’s a pure play on the improving economy, and rental car companies have lagged airlines in terms of raising their prices.

So many hedge funds are betting on Hertz increasing its prices, like the airlines did last year, and they are betting that demand will continue to improve with the recovery in the economy. It’s that simple.

Also, this is not a classic Icahn play. He typically comes into a deeply depressed stock selling near its 52-week low or multi-year lows. Icahn purchased Hertz near the stock’s all-time high.

But what Icahn is doing is playing his “change” card. He has recently laid out his evidence, based on his history as an activist investor, of how replacing a CEO is a powerful catalyst for producing shareholder wealth creation. And one of his fellow shareholders in Hertz is already at work on that strategy: Fir Tree Partners is pressuring the board to oust the CEO.

Will Meade
President of The Billionaires Portfolio


If you are managing more than $100 million, you are required to report to your holdings to the SEC within 45 days of the end of the quarter. And tonight we began to see those disclosures hit, for a peek into the activities of the world’s best billionaire hedge fund managers.

Now, 13-F filings provide a ton of information, but you have to know exactly what to look for to make them useful.

With that being said, here is what caught my eye tonight from the quarterly holdings of the world’s best billionaire hedge fund managers.

Apple ($AAPL)

Every top hedge fund seemed to either buy or increase their position in Apple (AAPL), including billionaire Leon Cooperman. Cooperman initiated a brand new position in the stock, buying more than 1 million shares in Apple last quarter (before it split). We said almost two months ago on this blog that Apple’s 7-for-1 stock split in June would be a positive catalyst to push the stock higher. In an instant, it would make the most widely held stock in the world affordable again for the retail investor. Apple is up almost 25% over since announcing the split, and is currently trading near a significant psychological round number of $100.

Expect a big fuss to be made about the activity in Apple shown in these filings, but this one looks old and tired. Apple was a good buy after its June stock split and was an even better buy when I called the bottom in the stock more than a year ago (see it here). And that was well before Carl Icahn or any major hedge fund owned the stock. Bottom line, I would not buy Apple here and would actually sell it when it hits $100.

Facebook ($FB)

The world’s best-performing hedge fund manager, David Tepper, added to his position in Facebook, but again Facebook had a nice run last quarter and is now up more than 40%. So piggybacking Tepper on Facebbook (which usually is a can’t-miss trade) today is again a stale trade. I don’t like it.

Zynga ($ZNGA)

Now here is a trade that could be compelling. Patrick McCormack, a Tiger Cub and head of Tiger Consumer Management, initiated a new position in Zynga last quarter at prices much higher than what Zynga is selling for today. By my estimates, Tiger Consumer purchased its new 18 million share stake in Zynga at $4, or 28% above its current price.

After selling off after a bad earnings report, the stock looks like it has found support and a double bottom at the $2.85 area. So Zynga could be a good trade to piggyback from Tiger Consumer.

Warren Buffett and Verizon ($VZ)

Buffett sold his entire position in Starz ($STRZA) and Conoco Phillips ($COP), and initiated a new $365 million position in Charter Comunications (CHTR).

Plus, as we predicted in February in our Forbes piece, he increased his position in Verizon. He now owns more than $700 million dollars worth of Verizon Stock ($VZ) after adding an additional 4 million shares.

The fact that Buffett increased an already huge stake in Verizon, and the stock has been flat over the past four months, makes VZ a very compelling trade to piggyback.

Billionaire Hedge Fund Manager John Paulson, Gold and Biotech

John Paulson initiated and added to positions that were heavily weighted in the biotech and healthcare sectors. Paulson initiated new positions in Allergan ($AGN) and Questcor Pharmaceuticals ($QCOR). And he added to his stake in Vanda Pharmaceuticals (a stock we owned almost two years ago in our Billionaire’s Portfolio service, at $4.50).

As for his gold position, no change. But he doubled his position in Dollar General (DG), and this could be the trade to piggyback. The stock has traded flat over the past four months, it’s rumored to be a merger or takeover candidate, and we have a big influential investor that has upped his stake, dramatically. That’s a good formula for success.

Tiger Global, Viking Global and Netflix ($NFLX)

Tiger Global initiated a nearly $200 million dollar position in Netflix (NFLX), a savvy move given Netflix is up almost 40% over the past four months. Billionaire Andreas Halvorsen of Viking Global also initiated a new position in Netflix, buying almost $600 million worth of the stock last quarter.

Billionaire Dan Loeb of Third Point

Billionaire Dan Loeb of Third point purchased new positions in Rackspace (RAX), IAC/Interactive Corp (IACI), and Ally Financial (ALLY). Third Point owns almost 10% of Ally, which recently started trading in April as a spinoff. Of all these new positions to piggyback, I like Rackspace (RAX) the best. Rackspace is down almost 20% year-to-date and has been rumored to be a takeover candidate.

Bill Ackman and Pershing Square

Ackman trimmed most of his real estate holdings, including Home Properties ($HME) and Apartment Investment and Manangement ($AIV), perhaps signaling that he believes REITs and real estate stocks have topped out. Ackman also increased his already large stake in Allergan ($AGN), showing that many of the top billionaire hedge fund managers are still very bullish on healthcare-biotech stocks, as well as M&A. John Paulson also took a large position in Allergan (AGN), a healthcare stock that is in the process of being acquired.

Billionaire Seth Klarman of Baupost Group

Seth Klarman is probably one of the worst hedge fund managers to piggyback. He prefers to hold a significant amount of cash and prefers illiquid, private investments to pubic ones. Klarman did purchase a new stake in EBAY (EBAY) and Theravanace Biopharma (TBPH), a stock that recently went public and is up more than 30% over the past three months. Klarman sold his entire stake in BP Plc (BP).

David Einhorn and Greenlight Capital

David Einhorn doubled his stake in Sunedison (SUNE) and now owns more than $500 million worth of this stock that we first recommended in The Billionaires Portfolio at $2.50. It sells for more than $20 today.

To sum up

Here are the takeaways from the Q2 filings of the world’s best billionaire hedge funds: First, the best hedge fund managers are still bullish on technology, healthcare and biotech stocks, but are turning bearish on energy stocks.

The top billionaire hedge funds took advantage of the mini crash in technology stocks during the second quarter to add to or initiate positions in some of the best names in technology: Apple, Facebook and Netflix. This bet paid off huge for many of these managers, as all three of these stocks greatly outperformed the S&P 500 over the past few months.

Lastly, many of these investors own the same stocks, the most popular being Family Dollar, Dollar General, EBAY and Apple.

Will Meade


Fact #1: Carl Icahn has returned 27% annualized over the past 52 years.

Fact #2: Academic studies from Harvard, Duke and NYU have shown that activist investors like Carl Icahn have produced an excess annualized return of 20% on average (i.e., the return above the S&P 500). So these studies show activists doing 30% relative to 10% in the S&P (during the period analyzed).

With that, when you see a top activist like Carl Icahn down on a stock, and the stock is underperforming the S&P 500, it presents a very intriguing opportunity — perhaps even a time to back up the truck.

This is the core strategy we implement in our Billionaire’s Portfolio service. We want stocks owned by the world best billionaire activist investors — particularly when they are down on them, and these stocks present an asymmetric risk/reward (little downside, a lot of upside opportunity).

Icahn is down more than 20% on his 6% stake in Transocean, as his average cost for Transocean is around $50. Transocean is down 19% year-to-date and is underperforming the S&P 500 by 26%.

Based on Icahn’s track record and the academic studies on the performance of activism, if Transocean fell in line with that history, we could see at least a 45% move for RIG, and that is assuming the S&P 500 returns zero.

Even better, you get to buy Transocean at a cheaper price than what Carl Icahn paid, and the stock has just formed a double bottom. You could pick the bottom in this stock.

Transocean recently reported better than expected earnings, but the stock has been weak due to a correction in oil prices — a move that is bucking the trend of rising geopolitical tensions (for the moment). Transocean has also recently declared its dividend, which always causes a high-yielding stock to temporarily sell off.

For a higher-risk way to play it, buying the Feb 2015 $40 call options for $2 could net you as much as a 600% return if Transocean goes up 45% by the end of February 2015. That’s $1,200 for every $200.

Will Meade
President of The Billionaires Portfolio


A new ETF was launched today that has a very similar name to our website and research.

Of course we at Billionairesportfolio.com like the strategy of following the smart money (the world’s best billionaire hedge funds and managers). In fact, we developed this process back in 2003 through our research at one of the top independent research firms.

The problem we have with the iBillionaire ETF is that the founder, Raul Moreno, isn’t a market professional but instead is a serial entrepreneur: tech today, finance tomorrow. With that, I am highly skeptical of his ability to construct a study with integrity and robustness that would lead to his claims. What are those claims? He claims on CNBC yesterday were that his “index” has outperformed the S&P 500 by 500 basis points (annualized) over the past eight years. To my knowledge, he created this index recently and cannot possibly claim a “return” over an eight-year history. Unless it’s an auditable return within the context of a money-management program, the performance claims attached to this ETF should be taken with a grain of salt (i.e., beware).

Yet I would be most concerned with the following:

1) iBillionaire includes George Soros in their index. This is ludicrous. Soros has been retired for over 10 years. His family office, managed by his son, is highly complicated, with assets spread across a variety of markets and themes. To piggyback his stock picks is of little value.

2) iBillionaire includes Richard Chilton in their index. Chilton is a relatively unknown “seed manager” who allocates money to hedge fund managers; the performance of his funds are average at best, and they own hundreds of stocks.

3) iBillionaire includes Bruce Berkowitz, the ex-stock broker who runs a mutual fund out of sunny Miami. Berkowitz imploded in 2011, underperforming the S&P 500 by a whopping 34 percentage points. We’re not sure he’s a guy you want to follow either. Berkowitz is not a billionaire. Though if you like Berkowitz and his investing style so much, you can simply buy his mutual fund, which has almost the same expense ratio as the iBillionaire ETF.

4) iBillionaire is basically an S&P 500 index clone. It holds only large-cap S&P 500 stocks, such as Apple, IBM and Coke — stocks that pretty much everyone already has in their retirement portfolio. So there is a very good chance you probably already own these stocks in your retirement portfolio or 401K, and you would just be duplicating your holdings by purchasing this ETF.

5) Also, according to my statistics, the iBillionaire Index has almost a 95% percent correlation to the S&P 500, so, again, you are basically getting the same exposure as owning the S&P 500 ETF ($SPY), except $SPY is 75% cheaper.

6) Lastly, and perhaps most importantly, the iBillionaire ETF has no track record, nor does its manager. At best, the numbers they promote are just a hypothetical backtested return with very little statistics given to validate it. At worst, those numbers could be completely made up, given there is no regulatory and auditing scrutiny given to the attributes of a newly created index.

In conclusion, the iBillionaire ETF looks like a passive way to get exposure to the biggest stocks in the S&P 500, with the wrapper of a hot, sexy concept (billionaires).

Will Meade
President of The Billionaires Portfolio (the first ever documented service that piggybacked the world’s best billionaire hedge funds and managers).


Trulia jumped 35% today and is up more than 50% over the last 2 months on rumors that the two top online real estate websites, Zillow and Trulia are going to merge.

You won’t find merger situations like this looking at charts, fundamentals or research reports. The best way you to predict which stocks will be acquired is by following the smart money, the world’s best billionaire investors and hedge funds.

Billionaire Chase Coleman and his Tiger Global Fund, probably the best technology stock picking hedge fund on the planet, owned almost 5% of Trulia. You could have piggybacked Tiger Global and purchased Trulia for $27 a share this year. That would have given you a double in less than five months.

At BillionairesPortfolio.com not only do we track every stock pick of the worlds best billionaire investors and hedge funds, but we only recommend them when they are selling at the same price or less than what the billionaire investor or hedge fund paid.

We have 20 stocks in our Billionaires Portfolio all owned by the worlds best billionaire hedge fund managers, all of which could be acquired for a 50% to 100% premium on any given day. To get a list of these stocks in our portfolio just click here.

Will Meade
President of The Billionaires Portfolio


You will never beat the stock market, unless you listen to this.

Even with more than 15 years of hedge fund experience, and a decent education, I would never invest a dollar unless I knew for sure that one of the top billionaire investors or hedge funds owned the stock. It’s just that simple.

I’m sorry to break it to you, but you can’t beat the market trading on news, or your stock broker’s latest tips, or following the latest musings on CNBC. It’s a good way to lose a lot of money, though.

There are only about 35 truly great investors in the world, ones that have consistently outperformed the market over the past 10-15 years. Some of these names you may recognize, like Carl Icahn, David Tepper, Dan Loeb and Warren Buffett.

So why make investing so difficult? Just simply invest with the best!

That’s what I do. I don’t own a mutual fund or listen to a financial advisor. I just buy what Icahn, Loeb or Buffett buys.

And I go one step further. Since I have actually traded for a multi-billion dollar hedge fund, and I know how hard it is to buy a big position in a stock, and how long it takes, I know the world’s best investors are patient and accumulate stocks on corrections and dips. That means, many times, I have a chance to pay the same price or better than what these billionaire investors and hedge funds paid. I call it, “buying a billionaire on a dip.”

It just makes sense, doesn’t it?

For example, let’s say I know one of the top billion-dollar activist hedge funds, which has averaged 30% a year over the past 15 years, owns 10% of a stock and is down on that stock. And I know this particular fund’s average holding period is two years. Why wouldn’t I want to own that stock?

It’s simple. It’s a statistical bet that puts the odds in my favor. And that is the formula for making money over time. Plus it lets me sleep at night knowing a big, influential investor is working relentlessly on my behalf to create value.

So I don’t throw darts. I don’t try to predict the future. I just bet alongside those that have a lot of money on the line, the power and influence, and a record of making a lot of money.

At BillionairesPortfolio.com, all we do is track the 30 to 40 best billionaire stock pickers, activists and hedge funds. And we look to get involved in stocks where we can pay the same price or less than they pay. Pretty simple, right?

Our stock picks gained 34% in 2013. And my studies of “buying the best billionaire investors on a dip” have shown this strategy would have made 31% over the past 12 years. That compares to a 6% return in the S&P 500.

Will Meade
President of The Billionaires Portfolio


Online Real Estate broker, ZipRealty, was acquired for a 122% premium today by Realogy, a real estate brokerage conglomerate. ZipRealty happens to be owned by two of the top small cap activist hedge funds in the world, Osmium Partners and Cannell Capital.

These two hedge funds own a combined 30% of Zip Realty and have been pushing for a change, including the option of a sale. With that, it was no surprise to us at Billionairesportfolio.com to see $ZIPR acquired for more than a 100% premium in one day.

In our premium research service, The Billionaires Portfolio, we own a stock in our portfolio that is controlled by the same small cap activist hedge fund Osmium Partners — the same investor that helped influence a 120% premium in ZipRealty.

Osmium owns almost 15% of the stock in our Billionaire’s Portfolio and in this case too, they are pushing for a sale of the company. We think this stock could be another Ziprealty, with the potential for a big take-out premium.

Will Meade
President of The Billionaires Portfolio


1) Mike Novogratz from Fortress is still bullish on Japan (and so are we at Billionairesportfolio.com) and Argentina, says that Argentinian stocks and currencies are a good bet because the current president is leaving.

2) Billionaire Leon Cooperman had 9 of his 10 stocks show a profit from last year’s conference so here are some of his picks: SandRidge (which we own in The Billionaires Portfolio)

3) Billionaire Stanley Druckenmiller goes for the throat in his criticism of the Fed’s low interest rates.
“I don’t know what it is in their forecasting record that gives them the confidence,” he says to a low gasp and some chuckles. (this is from a guy who dropped out of grad school in Economics at Michigan after one semester!)

4) Accel Partners’ Jim Breyer thinks three Internet companies could be trillion dollar companies in the next 10years: Google, Alibaba or Tencent. Mr. Breyer said he’d buy Alibaba for the right valuation.

Breyer sees a tale of two types of companies landscape right now. Start up/early seed valuations, he said, are very frothy but some will have huge takeouts by the big Internet companies like Google. Others in the consumer Internet space will just die if the big tech firms don’t want them. (exactly why I have been saying the best fund hedge to start today is a long short internet fund

5) Governor Christie tells you to short Tesla, $TSLA. Basically Tesla is in violation of New Jersey Automobile laws and they can no longer sell cars in the state.

6) Billionaire Hedge Fund Manager John Paulson and Larry Robbins both see M&A picking up, especially in energy and media. Paulson like Oasis Petroleum $OAS

7) Paulson is still bullish on the housing market. (He owns Realogy (RLGY) which I think is the best pure play on the residential housing market)

Peltz defends Activist Investing “He says that activists are helping companies and that he doesn’t agree with arguments they are too short-term. He says activists fix what’s wrong and work for all shareholders, even if they sell out” (which is exactly what we do at Billionairesportfolio.com coinvest and piggyback activist investors)

9) Lastly both Bill Ackman and Nelson Peltz agree that Carl Icahn is the world’s greatest investor, even better than Buffett(we have been saying this for years at Billionairesportfolio.com)

Will Meade
President of The Billionaires Portfolio


Everyone knows Carl Icahn is the world’s greatest investor, he has averaged 27% annualized returns for over 52 years, the greatest track record in the history of investing.

Icahn initiated a 6% activist position in Talisman Energy (TLM) last fall at an average price of $11.66. Today you can coinvest with Carl Icahn in Talisman at a 15% discount to what he paid for his 6% stake, as the stock is selling near support at $10 a share.

Talisman is an undervalued oil and gas producer that sports nearly a 3% dividend yield. Icahn has stated that he plans to have discussions with the management and the board of the company, about strategic alternatives including selling all or parts of the company.

By paying the same price or less for Talisman, you are getting to ride Carl Icahn’s Activism for free, and better yet you have a 15% margin of safety, as Talisman is currently selling at a price 15% below to what Icahn paid for his stake.

Coinvesting with the worlds greatest billionaire investors and hedge funds (like a Carl Icahn) is what we do at Billionairesportfolio.com. We are the first and only website that empowers the everyday investor to coinvest with world’s greatest billionaire investors and hedge funds.

When you pay the same price or less for the same stock that the billionaire investor or hedge fund paid, and sell when we find the big investors has sold, you can capture almost 98% of the actual gross returns of these top hedge fund managers and investors. And you can do this yourself, in your own TD Ameritrade, Schwab, Etrade account, etc. You can follow our lead and the lead of billionaire investors without the $5 million minimum and 2% and 20% fee structure normally required to invest directly with one of these top hedge funds.

Furthermore when you sign up for The Billionaires Portfolio you will get our handpicked portfolio of small cap and deep value stock picks owned by the world’s best billionaire investors and hedge funds, all of which could double or triple by the end of the year.

You will also receive weekly updates and analysis on the stock market and the economy mailed to your inbox from a top hedge fund trader and economist with over 30 years combined experience in the hedge fund industry.

Will Meade
President of The Billionaires Portfolio


Goldman Sachs, like them or not has the best research on the street, and they have published some very insightful studies and research pieces on options trading over the last 10 years. After reading literally thousands of research reports from Goldman Sachs on options, as well as working for a former Goldman Sachs Partner at a hedge fund, I have discovered some simple, yet rarely used techniques that could greatly improve your options trading.

1) Catalyst- The underlying theme of any research piece from Goldman Sachs on Equities or Options is that you must have a catalyst to invest. When you are trading options, especially when you are buying call options you not only have to know what the catalyst is, but also the exact date of when the catalyst will occur.

2) The Options Must be Cheap – Simply put the volatility of the stock’s options must be lower than its historical average or near its one year low.

3) Mean Reversion – Stocks that offer the most liquid options to trade are usually large cap stocks, (S&P 500 stocks) and these stocks are traded best using mean reversion. Meaning your odds are much higher for success when you buy a call option on a S&P 500 stock that is not only underperforming the S&P 500 but is also selling near its 52 week low.

Finding a call option that fits all of the above criteria is not easy, that is why good option trades are hard to find.

Right now though there is a stock, that has a huge catalyst occurring in September of this year, and the stock is not only underperforming the S&P 500 but is near its 52 week low as well. More importantly the call options on the stock are dirt cheap.

Today I can buy an in the money call option on this brand name multi-billion dollar market cap stock for just $2, and even better the option doesn’t expire until four months from now.

This brand name stock is also controlled by one of the world’s best billion dollar activist hedge funds (they own almost 6% of the company) and this billion dollar activist hedge fund is looking to replace the company’s board and ceo at their annual meeting in September, which is the catalyst that could reprice the stock 10% to 20% higher by October.

If this stock goes up 10% by October the call options could triple, if the stock goes up 20% by October the call options could return more than 500%

I know this fund well, my subscribers actually piggybacked one of this activist fund’s stock and options picks to a combined 200% gain last year.

This stocks is right at support and the call options will not stay this cheap for long, to get the name of the stock, the exact call option to buy, the name of the activist fund and the catalyst all you have to do is sign up for The Billionaires Portfolio and I will email you the options play immediately.

This Call Option which costs only $200 could not only pay for your subscription to The Billionaires Portfolio plus put hundreds of extra dollars in your pocket, but it gives you access to our portfolio of 20 stocks owned by the world’s best billionaire investors and hedge funds, all of which could double or triple by the end of the year.

Plus as a member to Billionairesportfolio.com you will get weekly updates on the economy and the stock market mailed to your inbox, by a top hedge fund trader and economist with a combined 30 plus years of experience in the hedge fund industry.

Will Meade
President of The Billionaires Portfolio


Did you realize that Warren Buffett returned 81% a year from 1980 to 2003?

Buffett accomplished this amazing feat by using a strategy called “takeover speculation.” He bet big, and with leverage, on stocks he thought had a very high likelihood of being acquired.

The average person on the street thinks Warren Buffett is a safe value investor who holds stocks forever. This is only partially true. The other half of his portfolio, and the part of his strategy that has juiced the biggest returns for him, was takeover speculation, where he used significant leverage and options to produce 80+% annualized for 24-years.

Buffett said in a New York Times interview that he made the greatest returns ever in his portfolio employing this takeover speculation strategy.

But Buffett ran into a problem. He became too big. He had to stop using this strategy because the assets he was managing, which in 2003 reached $50 billion, were too big to successfully execute it.

He said in a BusinessWeek article that he guaranteed he could make at least 50% a year if he were managing smaller assets. And he can back it up. We have documented proof from Berkshire Hathaway letters, and from an academic paper on Buffett, which showed that he produced an 81% annualized return over a 24-year stretch.

For those who are interested in what 81% annualized compounds to over 24-years, here are some scenarios:
1) A $1,000 account compounded at 81% for 24-years would turn into $1 billion.
2) A $10,000 account compounded at 81% for 24-years would turn into $15.2 billion.
3) A $20,000 account compounded at 81% for 24-years would turn into $30.2 billion.

Interestingly enough, Buffett’s strategy of takeover speculation is exactly the strategy we use at the Billionairesportfolio.com, and trust me it works.

We had two stocks in our portfolio acquired for a 65% and 82% premium in one day, and better yet we own a handful of stocks in our portfolio that we think could easily double on a a takeover. Takeover speculation works great in a sideways stock market like today, and its an absolute return strategy that does not depend on the stock market to make money.

Do not miss out on your chance to own stocks that could double overnight on a takeover, sign up today for The Billionaires Portfolio.

Will Meade
President of The Billionaires Portfolio

Biotech stock Therapeutics MD (TXMD) was up 32.5% today. Friedman Billings Ramsey raised their price target for the stock to an incredible $34.

TXMD now trades at $5.47 — the FBR price target would mean a 600% return.

TXMD is owned by the billion dollar biotech hedge fund RA Capital Management. RA is the best in the business of biotech investing, and owns more than 6% of TXMD.

RA is one of our favorite hedge funds to piggyback. Its a billion dollar biotech focused hedge fund run by Peter Kolchinsky, a PHD from Harvard. The fund has one of the best track records in the world, averaging 41% a year since 2002.

Our subscribers are currently up more than 160% on a biotech stock that we followed RA Capital Management into.

Learn more about RA Capital, their portfolio and our Billionaires Portfolio, where we piggyback the best ideas from the biggest, most influential investors.


Carl Icahn is 80 years old and still puts every penny of his money in the stock market.

Icahn who has the greatest track record in the history of investing destroying even Warren Buffett has averaged 27% a year for 52 years. To put this in perspective if you would have invested $1000 dollars with Carl Icahn 52 years ago you would be worth almost $230 million dollars today!

If you would have invested $10,000 dollars with Carl Icahn 52 years ago you would now be worth more $2.3 Billion Dollars!

But you,like most investors, are not worth a rounding error on that sum of money.


Because you invest like the herd. You panic and sell stocks on any bad news. You buy stocks when they have already broken out or are at new highs.

You diversify or deworsify by putting your money in negative return assets like gold and treasuries.

Your only 30,40,50 even 60 years old and you invest like the world is going to end, like its 2008 again, don’t you?

Yet Icahn who is almost 80 and has a lot more to lose than you, invests almost 100% of his $25 billion dollar plus net worth in stocks. Icahn doesn’t worry about 2008. Heck he lost 34% of his money in 2008. But he never stopped buying stocks, and 6 years later he is up more than 300% …he quadrupled his net worth. Did You?

No, you listened to herd-like advice from unsophisticated-uneducated brokers-advisors who charge you high fees for 6% annual returns, that’s 21 percentage points less than what 80 year old Icahn returns every year.

You also sell stocks too quickly, and you never let your profits run. Icahn holds stocks for two or three years even when he is down 50% or more on one of his positions.

You never buy dips or buy more of a stock when it goes down. Do you? Icahn does, and he is worth $25 billion.

So stop investing like the herd, invest like a billionaire, heck start investing like Icahn.

We follow every single move Icahn makes. Icahn has already made my subscribers rich from piggybacking his stock and options trades. So what are you waiting for! Sign up today

Billionairesportfolio.com is the only website that allows investors to piggyback the trades of the world greatest billionaire investors.

Will Meade
President of The Billionaires Portfolio


EveryWare Global (EVRY) popped more than 22% today after the company reached a deal with its labor workers that will help the company reduce its future operating costs.

Most importantly, the company last week saved itself from bankruptcy by reaching an agreement with its lenders that will allow it to stay in business for at least the remainder of the year.

Two months ago the stock traded for $.67 cents. It is now up nearly 500% from that level.

EVRY is owned by the billionaire activist hedge fund The Clinton Group. The Clinton Group, one of the top small cap activist hedge funds in the world, owns almost 16% of the company. We are very familiar with The Clinton Group at BillionairesPortfolio.com. We followed them into one of their biggest positions last year. That gave us a 60% return in less than 4 months.

Make no mistake, the influence of the Clinton Group is a driving factor behind the positive financial development in this stock. And that has led to it’s sharp recovery. For shareholders, this is the benefit of having a powerful shareholder on your side, constantly working to create value in a stock.

To learn more about co-investing with, and piggybacking the best ideas of, the world’s top billionaire investors join us.

June 30, 2014

The billionaire investor best known for breaking the Bank of England is excerpting his influence again. George Soros, the father of central bank activism is ramping up some shareholder activism — against Penn Virginia (PVA). The Soros family office, Soros Fund Management, disclosed a nearly 10% stake in PVA in its March filing. Last week they wrote a letter to PVA management complaining that they are destroying shareholder value, and they are pushing the company to sell itself. Soros Fund Management is the largest shareholder and they are shaking things up at PVA.

The stock is up more than 13% since Wednesday of last week.

We have 20 stocks in our Billionaire’s Portfolio that are all under the influence of powerful investors — all of which are pushing to unlock value for us. Join us!

Carl Icahn disclosed a 9.4% stake in Family Dollars stores on June 6. The stock gapped up more than 16% on the news. Today Icahn is beginning to rattle the cage at FDO. He’s demanding a sale of the company to drive shareholder value. We’ve followed Icahn on four stocks in our premium service, The Billionaires Portfolio. Icahn’s continued investing success can be attributed to one important talent: He’s a change-maker.

When we follow him, we can be assured that he has a plan for change and that he will fight to make it happen. Plus, when we follow Icahn, we get an added bonus that few, if any, other big time investors summon: Because of his great success, his campaigns tend to attract other influential investors to join in – stacking the odds even more favorably for shareholders.

Here’s a look at the Icahn effect on FDO thus far:

We have 20 stocks in our Billionaire’s Portfolio that are all have the potential to be taken out for huge premiums. Join us!


Yesterday, Idenix Pharmaceuticals (IDIX) was acquired by Merck for a 229% premium. That’s one of the biggest one day moves ever for a stock listed on the New York Stock Exchange. Billionaire and top hedge fund manager, Seth Klarman of the Baupost Group, made over $1 billion on his investment in Idenix, in one day.

How did he do it?

Klarman owned 35.4% of Idenix (almost 54 million shares). He paid around $300 million for his original stake, which is now worth $1.3 billion.

It’s very common in the hedge fund world for investors like Klarman to take such large positions in a single company. They spend a lot of money on talent and research, sometimes tens of millions of dollars, in an effort to uncover the investment opportunities that offer the potential to make multiples on their investment. When they find good candidates, like Idenix, they tend to bet big.

We have 20 stocks in our Billionaire’s Portfolio that are all have the potential to be taken out for huge premiums. Join us!

Will Meade


We were featured in Barron’s over the weekend! Excerpts below, with a link to the piece.

“The trick is to focus on the activist subset, says William Meade, co-founder of Billionaire’s Portfolio (billionairesportfolio.com). It usually takes big fund managers months to build positions and a year or more for their activist proposals to play out. Billionaire’s Portfolio, launched in August 2012, follows along, spreading a hypothetical $20,000 across 20 stocks held by the likes of Carl Icahn of Icahn Enterprises and Starwood Value’s Jeffrey Smith.

Meade follows about two dozen whales whom he describes as “true activists with a track record of taking a 5% position in a company and influencing change.” While many institutional purchases don’t show up on an SEC form for months, trades by 5% owners have to be reported within 10 business days. That usually bumps up share prices, but then they settle down.

For $297 a quarter, Meade alerts Billionaire’s Portfolio subscribers to entry and exit points through e-mail and on a private blog that details the rationale for every recommendation. Meade and aptly named co-founder Bryan Rich mirror those trades a day later in a $100,000 real portfolio they share. They buy on dips so subscribers realize about the same average share cost as activists. Positions adjust when activists do.

Meade only buys Russell 2000 issues he considers “undervalued.” But that assessment has less to do with price/earnings ratios and future cash flows than the — often, overtly stated — plans of activists to “unlock value.” “I only buy when there is an event or an influential investor positioned to reprice the stock,” he explains.”

“Meade’s backtesting shows that, whether their initiatives succeed or fail, his activists usually make money — a 31% annualized return over the past 12-years compared to the S&P 500′s 6.1%.”

Bryan Rich


Carl Icahn, the world’s greatest investor, is on pace to become the world’s richest man. And he has had a lot to say about Apple’s stock in the past week.

On Wednesday, he tweeted the following: “As we said at conference yesterday, we continue to believe $AAPL remains meaningfully undervalued. Many analysts fail to understand company” and “agree completely with $AAPL’s increased buyback and extremely pleased with results. Believe we’ll also be happy when we see new products.”

Remember, I am the man that called the bottom in Apple in the summer of 2013. I was profiled on CNN/Money saying Apple had bottomed around $400. I was the first and only person in the investment community to become bullish on Apple during this time.

I am more bullish than ever on Apple now. The 7-to-1 stock split will drop the cost of the stock to $80 from $547. That means every parent will now be able buy their kids Apple stock as a birthday gift, every small investor who couldn’t afford Apple at $550, will now be able to buy 5 shares of Apple at $80. This is guaranteed built in demand that will come into Apple’s stock when it splits in June of this year.

How do you profit from it? Well, I am quite confident that Apple will go up 20% or more by June of this year. And there is a trade that I am eyeing on Apple which has the potential to make 500% or more if I am right. It’s a low cost trade, one that will only cost you $690 but has the potential to make $3000 or more.

Remember, the world’s greatest investor, Carl Icahn, a man who has averaged 27.6% a year for 52-years (the greatest single track record of any investor, including old man Buffett) has also told you Apple is extremely undervalued. Icahn is so good, if you would have given him $10,000 when he first started his fund 52 years-ago you would now have an amazing $2.5 billion. So even if you don’t listen to me, listen to Icahn.

To get the specifics of this incredible “Apple Stock-Split Trade” all you have to do is subscribe today to our premium research service, The Billionaires Portfolio.

The Billionaires Portfolio is chock full of what hedge funds call “asymmetrical trades.” These are trades that have limited downside but huge upside potential. All of the stocks in our Billionaires Portfolio are not just undervalued, but they all have an influential billionaire hedge fund that is working with the company to create instant shareholder value and positive returns for the stock.

Will Meade
President of The Billionaires Portfolio


Our free research note: Five Activist-Owned Stocks Analysts Think Will Triple.


Our recent note to subscribers on both third party studies and our proprietary study on activists: What’s In Store for Stocks, Plus The Power of Activism.


In an article this morning, Bloomberg reiterated what we have been telling people since 2002: Piggy-backing the picks of the world’s greatest billionaire investors and hedge funds is the best way to beat the market.

You can find the Bloomberg article here: Raiders-Turned-Activists Prove Boon for Stocks Beating S&P 500. Here’s the high level view: They cite a study that demonstrates the picks of activist investors have destroyed the S&P 500 with less risk over the past five years.

Interestingly, they mention one of the stocks we held in our portfolio last year (and consequently, our subscribers made nearly a 100% profit on). The stocks is Office Depot. We followed Starboard Value into ODP, also mentioned in the Bloomberg study. This investment played out brilliantly according to script. Starboard wrote an elaborate letter to ODP management at the outset of their campaign, laying out a game plan for unlocking value in the stock.

My partner and I have been piggybacking billionaire investors and hedge funds, specifically activist investors, in our accounts since 2002. We started our premium research service and website in 2012, giving average investors the opportunity to follow our lead. Join us!

Will Meade
President of The Billionaires Portfolio