Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5 Stocks Billionaire Ken Fisher Bought Last Quarter

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Warren Buffett's right-hand man and business partner Charlie Munger offers this advice for successful investing: "Carefully look at what other great investors have done." Luckily for us, great investors are required to divulge changes they make to their portfolios on a quarterly basis. These SEC 13-F filings allow us to peek into the stock comings-and-goings of money pros, including multibillion-dollar hedge fund manager Ken Fisher.

Let's take a more in-depth look at a few stocks that Fisher loaded up on, according to Fisher Asset Management's most recent quarterly 13F SEC filing.

Old favorites
In the fourth quarter, Fisher increased his positions in St. Jude Medical (NYSE: STJ  ) and Darling International (NYSE: DAR  ) . St. Jude recently received a warning letter from the U.S. Food and Drug Administration  regarding design practices and quality systems at a California facility. This was widely expected after the FDA released a report in the fourth quarter regarding concern over the design and testing of the company's Durata lead. This led to a stock pullback, which Fisher likely saw and took advantage of.

Revenues and earnings were both down last quarter for Darling International. The Texas-based company provides recovery and recycling services of cooking oil and bakery waste for the food industry. Darling faces lower finished product prices, which may continue to dampen earnings. But its biodiesel joint venture with Valero Energy shows promise.

St. Jude and Darling possess forward price-to-earnings ratios of 11 and 13, respectively. Since the P/E ratio of the S&P 500 is currently near 17, these two stocks appear undervalued. Our Motley Fool CAPS community highly rates both as 5-star (out of 5) stocks.

New additions
Fisher added Digital Realty Trust (NYSE: DLR  ) , Elizabeth Arden (NASDAQ: RDEN  ) , and Hain Celestial (NASDAQ: HAIN  ) to his portfolio in the fourth quarter. Geographically diversified  REIT Digital Realty Trust will likely take advantage of the explosive growth in data storage. Global data center traffic is projected to grow fourfold by 2016. The San Francisco-based REIT invests in data center properties, such as corporate IT offices, and trades at a forward price-to-earnings ratio of 14.

Beauty products company Elizabeth Arden looked good enough for Fisher to scoop up some shares. Last quarter, net sales increased nearly 14% year over year  and were aided by a launch of revamped Elizabeth Arden products. The company appears undervalued, boasting a forward price-to-earnings ratio of 15.

On the other hand, Hain Celestial appears overvalued, trading at a forward price-to-earnings ratio of 19. The company strives to gain market share in the very competitive but profitable natural and organic food industry. Our Motley Fool CAPS community rates Hain a 5-star stock. Meanwhile, it considers both Digital Realty Trust and Elizabeth Arden as 2-star stocks.

Foolish bottom line
Of these stocks, I like Darling and Digital Realty Trust right now. I think the long-term trends for the industries and potential for growth are extremely compelling. But don't simply take Fisher's (or my) word as gold. Conduct your research, determine your take on these companies, and formulate your own investing thesis.

Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2212176, ~/Articles/ArticleHandler.aspx, 9/27/2016 8:29:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:02 PM
DAR $12.91 Down -0.17 -1.30%
Darling Ingredient… CAPS Rating: ****
HAIN $34.63 Down -0.35 -1.00%
Hain Celestial CAPS Rating: ****
STJ $79.06 Down -0.58 -0.73%
St. Jude Medical CAPS Rating: **
DLR $97.64 Down -0.31 -0.32%
Digital Realty Tru… CAPS Rating: ****
RDEN $0.00 Down +0.00 +0.00%
Elizabeth Arden CAPS Rating: No stars