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Billionaire Ken Fisher's Top Stock Picks

Nicole Seghetti
November 22, 2012

Ken Fisher runs the $34 billion  hedge fund Fisher Asset Management, an independent money management firm. Fisher's picks have outperformed the S&P 500 by more than 5% on average annually for the past 15 years. In addition to his day job, Fisher's been a Forbes columnist for nearly three decades. He's literally written the book -- several New York Times best-selling ones, in fact -- on investing. Bottom line: This guy knows his stuff. And we investors should sit up and take notes.

Under the hood of Fisher's picks
Fisher's holdings include a diversified mix of stocks that span all sectors. Currently, Fisher is underweight in conglomerates, transportation, and utilities (with less than 1% in each sector) and overweight in financial services and tech (with roughly 20% apiece). The majority of the fund's top 50 holdings pay more than a 2% dividend yield. The fund boasts a very low turnover, which minimizes the dependence on market timing and instead relies on Fisher's long-term stock picking prowess.

Check out Fisher Asset Management's top 10 holdings based on its 13-F SEC filing for Q3 2012. These positions make up roughly 20% of the hedge fund's portfolio.


Market Cap

Percentage of Portfolio

iShares iBoxx $Invest Grade Corp Bond



Pfizer (NYSE: PFE  )

$177 billion


Johnson & Johnson

$192 billion


Cisco Systems (Nasdaq: CSCO  )

$97 billion


General Electric (NYSE: GE  )

$215 billion



$214 billion


American Express

$62 billion



$98 billion


Wells Fargo

$172 billion


Apple (Nasdaq: AAPL  )

$528 billion


Sources: Whale Wisdom , Yahoo! Finance

All of the hedge fund's top stock holdings are large-cap or megacap stocks, meaning market capitalization greater than $10 billion or $100 billion, respectively. Fisher points out his bullishness on very large company stocks in his Stock Market Outlook for Q4 2012. Of these stocks, he loaded up most heavily on shares of Apple in the most recent quarter.

Let's look at five of these companies and examine some possible reasons Fisher likes these stocks in particular.

Last year, Pfizer announced plans to refocus the company's strategy on its core pharma business and sell or spin off some non-pharma businesses. Many investors, Fisher probably included, believe this strategy will allow Pfizer's drug pipeline to have a greater effect on the company's growt