A Note From Stephanie Link
At Insider Monkey, we track 13F SEC filings from many hedge funds and other large investors, including the investment activities of billionaires and their investment teams. For today's piece, we'll focus on the consumer sector: Within that space, here are the five largest new positions from billionaires.
First, Bill Ackman's Pershing Square initiated a position of about 22 million shares in Procter & Gamble (PG) -- which, according to the fund's 13F filing, made this the second-largest position in the fund's portfolio. Shares of the personal-products giant -- whose brands include Pantene, Gillette, Pampers and Duracell -- has low market exposure, with a beta of 0.3, and the company pays a 3.3% dividend. It has also reported solid year-over-year earnings growth in the last quarter. The stock, meanwhile, trades at 18x trailing earnings. While that may be a bit high, Wall Street analysts believe earnings will continue to grow -- and, on a forward basis, its price-to-earnings ratio is 16x. Given the dividend yield, this may be a fairly valued defensive pick. (Continued)
And on RealMoney Pro: RealMoney Pro veteran Tim Collins explains his Netflix trade:
Netflix (NFLX) has a major issue. It has little original content, yet does not want to pay up for the content it needs. It's like a moody teenager who wants to borrow the car for a long weekend road trip who refuses to even fill the car with gas.