Billionaire Leon Cooperman (Trades, Portfolio)'s Omega Advisors has disclosed an equity portfolio valued at $4.95 billion as of the end of the third quarter of 2015. The equity portfolio is mainly invested in Finance (18%), Consumer Discretionary (18%) and Tech (14%) stocks.
The largest bets made during the quarter were Alphabet Inc. (GOOGL, Financial), Pfizer Inc. (PFE, Financial) and Valeant Pharmaceuticals International Inc. (VRX, Financial).
These stocks comprised 6.22%, 3.06% and 1.75% of the portfolio. The portfolio's top 10 stocks constituted 38.85% of its assets.
Biggest bet
The first on the list is Alphabet Inc. (GOOGL, Financial) with 482,749 shares as of Sept. 30. In the quarter, Cooperman added 269,090 shares, an increase of 126% to the position. It is important to mention that the stock gained 16.6% during the quarter, an excellent return for the period.
There are several reasons why Cooperman may have added to his holding. The company's products benefit advertisers and customers. Google's browser or other products such as Gmail or Google Maps provides internet users with unique experiences.
The business of advertisement on the internet is significant and will continue growing. Further, areas such as Asia are contributing to growth as economic weaknesses are decreasing.
Google search has more than 60% of the market share, and we believe that no other competitor can take this first place.
Other strong moves
Cooperman also bet strongly on Pfizer, opening a position with 4,830,595 shares, valued at $151.7 million as of the end of the quarter.
Pfizer has competitive advantages in creating new drugs. This is possible due to its financial strength provided by the stable cash flows that are also useful to maintain a dividend yield of more than 3%.
Although the firm lost patent protection, the Pfizer and Allergan (AGN) merger should strengthen the business.
The third on the list is Valeant Pharmaceuticals International Inc. (VRX, Financial). Cooperman started a new position with 484,915 shares valued at $86.50 million.
The company's management has helped the pharma company to complete several acquisitions. Further, with a well-diversified portfolio, Valeant can face unsatisfied demand in areas such as Latin America.
Disclosure: As of this writing, Omar Venerio did not hold a position in any of the aforementioned stocks.
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