Case in point: the constituents of the iBillionaire Index, which tracks the top 30 U.S. equities held of a select pool of leading billionaires. The index (and Direxion-licensed ETF) is a curated basket of “favorite” stocks across the investment portfolios of Wall Street heavyweights like Carl Icahn, David Tepper and Dan Loeb. Rebalanced quarterly, it was most recently revised in accordance with third quarter regulatory reports to the SEC.
Curious as to where the smartest of the smart money is going? Check out these 10 stocks drawn from the iBillionaire Index that billionaire investors love:
Apple (NASDAQ:AAPL). There is, perhaps, no bigger proponent of Apple than Carl Icahn. And even with the tech giant’s excellent 2014 run, the billionaire continues to insist it can climb higher. Icahn is accompanied in betting on Apple by fellow billionaires David Einhorn, Leon Cooperman and David Tepper, among others. One trend worth watching: a slight move away from the stock in Q3.
Actavis (NYSE:ACT). In late 2014, Actavis came out of nowhere to acquire Allergan (NYSE:AGN), effectively pushing Valeant (NYSE:VRX) out of the picture. The deal has passed the antitrust vetting process, and Activas expects to hit a home run on earnings. The billionaires benefitting from this one: Dan Loeb, Leon Cooperman and Steve Mandel.
Dow Chemical (NYSE:DOW). With a 13% allocation in Dan Loeb’s public equity portfolio as of Q3, Dow Chemical is one of the billionaire’s most recent activist targets. George Soros and Larry Robbins are on the sidelines of the Third Point Capital founder’s play as well.
Micron Technology (NASDAQ:MU). Micron Technology climbed 60% in 2014, making David Einhorn’s Greenlight Capital millions. The billionaire purchased 47.7 million MU shares during the fourth quarter of 2013 and sold off parts of his stake (for a profit) across subsequent quarters. In its latest earnings report, Micron produced mixed results.
MasterCard (NYSE:MA). Warren Buffett isn’t the only billionaire paying attention to MasterCard, lately. Tiger cubs Chase Coleman and Steve Mandel have been eyeing the credit card giant as well. And with good reason, as dropping gas prices and subsequent “barrel stimulus” could have major implications for consumer spending.
Dollar General (NYSE:DG). One of the companies at the center of the dollar store war over Family Dollar (NYSE:FDO), Dollar General is a favorite among a number of billionaire investors. The list of big-name backers includes Jorge Lemann, John Paulson and George Soros.
Priceline Group (NASDAQ:PCLN). David Tepper upped the ante in Priceline in Q3, boosting the online travel platform to a 6% allocation in his fund. Ray Dalio’s Bridgewater Capital bought PCLN shares during the period as well.
21st Century Fox (NASDAQ:FOXA). Media and entertainment giant 21st Century Fox had a stellar December, hitting a new high mid-month. As of its most recent regulatory disclosure, Chase Coleman’s Tiger Global has a 16.8-million-share stake in the company.
Thermo Fisher Scientific (NYSE:TMO). With a 7% allocation in Larry Robbins’ portfolio, Thermo Fisher Scientific has been a driver of the billionaire’s recent success. Coincidentally, it is also one of the stocks on which the hedge fund manager overlaps with Leon Cooperman, under whom he spent a handful of years working at Omega Advisors.