It’s widely known in the mutual fund community that poor performing stocks which are heavily owned by institutional money managers can be targets of ”window dressing” at the end of a quarter.

Window dressing is a tactic where portfolio managers sell their worst performing stocks and buy more of their best performing stocks into the end of the quarter. When they report the quarter-end holdings of their portfolios, after a little window dressing, they tend to look a little smarter when they have a book of nicely performing stocks, after purging the weaker performers.

At, what’s most interesting about this practice to us is that it can create an opportunity for us to buy billionaire-owned stocks at a price cheaper than what the billionaire paid for his shares.

Below is a list of four of the highest conviction stocks of four of the top billionaire investors in the world. Each of the stocks listed got a little cheaper in the past couple of weeks, likely due to some mutual fund window dressing, along with a dose of some broad market risk aversion:

1) Qualcomm (QCOM) – Billionaire Barry Rosenstein’s activist hedge fund Jana Partners owns $2 billion worth of Qualcomm. It’s the fund’s largest holding. Jana paid around $66 to $68 for their QCOM shares. That’s about 10 % higher than what it is selling for today. Qualcomm dropped six straight days into the end of June, typical behavior of window dressing selling. Qualcomm now has 3.05% dividend yield and sells for just 14 times earnings with one of the best balance sheets of any S&P 500 company.

2) Monsanto (MON)- Billionaire Larry Robbins of Glenview Capital was named the number one hedge fund manager by Barron’s with a 57% annualized return over the past 3 years. Monsanto is Glenview Capital’s largest position, and the fund’s average cost for Monsanto is around $112 a share. That’s 5% higher than what Monsanto sells for today. Robbins stated at hedge fund conference that Monsanto could be worth $220, or a double from its price today.

3) Chesapeake Energy (CHK) – Billionaire Carl Icahn owns 11% of Chesapeake at $17 a share, and recently added to his stake in March at $14. Chesapeake has been hammered ever since. The stock is down 25% over the past month and 10% this week alone. CHK now has a 3.2% dividend yield and sells at just two-thirds of its $15.50 book value.

4) Micron Technology (MU) – Micron is David Einhorn’s second largest position in his hedge fund Greenlight Capital. Einhorn paid around $21 a share for his nearly $1 billion position. The stock now sells for $18.78 – about 11% cheaper than what Einhorn paid. MU sells for just 6 times earnings and 4 times cash flow. Micron looks like the classic window dressing stock as it dropped 22% over the past week., run by two veterans of the hedge fund industry, helps self-directed investors invest alongside the world’s best billionaire investors. By selecting the best ideas from the best billionaire investors and hedge funds, our exited stock investment recommendations have averaged a 27% gain since 2012.

How Predicted the Big Pop In Sarepta Therapeutics

The Carl Icahn Effect & How It Can Work For You

According to the Rob Copeland of the Wall Street Journal today, top hedge fund managers are beating the S&P by a huge margin this year.

The article notes that three billionaire hedge fund managers, David Tepper, Larry Robbins and John Paulson, are all up 10% or more after fees in 2015. That compares to a 3% return for the S&P 500.
Of that trio, Paulson is up an eye popping 19% year-to-date. That’s more than six times the return of the S&P 500. He’s done it by betting correctly on stocks like Time Warner Cable and Salix Pharmaceuticals, both of which were acquired for large premiums.

At we have been piggybacking the highest conviction stocks, ETFs and options of the world’s best billionaire hedge fund managers since 2012, and we’ve witnessed first-hand, the power of following the best ideas of the world’s greatest billionaire investors. Earlier this year, we followed Perceptive Advisors, a multi-billion dollar biotech specialist hedge fund, into Sarepta Therapeutics (SRPT). That stock is up 155% since early February.

Given the value of following the biggest and best, and given the hot hand that billionaires Tepper, Robbins and Paulson have had this year, let’s take a look at their most recent stocks picks:

1) Billionaire Larry Robbins of Glenview Capital has made huge returns on healthcare stocks this year, including a $200 million gain in one day when Humana announced that it was exploring a possible sale, and subsequently exploded higher in value. Robbins has two new healthcare picks, both of which he has said could double, Abbvie (ABBV) and Brookdale Senior Living (BKD).

2) Billionaire John Paulson, an M&A specialist with an incredible track record of buying stocks right before they get acquired, has initiated a new stake in AIG (AIG). He also recently added to his position in T-Mobile (TMUS), a stock that has constantly been rumored as a takeover target.

3) Billionaire David Tepper who recently made a bold bet on the broad stock market, buying a billion dollar worth of call options on the Nasdaq 100 (QQQ) and the S&P 500 (SPY), has added two new notable stocks to his portfolio recently, Micron Technology (MU) and Jet Blue Airways (JBLU).

If you are a journalists, website or blogger, feel free to properly attribute our work to We pursue plagiarists to the full extent of the law.