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Holly LaFon
Holly LaFon
Articles (8613)  | Author's Website |

Ken Fisher’s Top 10 Third-Quarter Stock Picks

Billionaire adds to diverse portfolio

Billionaire investor Ken Fisher (Trades, Portfolio) added 118 stocks to his vast portfolio that comprised 786 positions at the end of the third quarter, according to a portfolio update he released Tuesday.

Fisher, who founded wealth management firm Fisher Investments in 1979, placed the majority of his portfolio in three sectors: Financial services occupies 21.6%; technology represents 19.1%; and ETF, options and preferred total 15.2%. At the end of the third quarter, the value of the stocks in this portfolio totaled $67.5 billion.

The diversification in Fisher’s portfolio means no new stock represented more than 0.05% of the holdings in it. In the third quarter, the 10 largest new positions Fisher established were: Allscripts Healthcare Solutions (NASDAQ:MDRX), CoreSite Realty Corp. (NYSE:COR), Impax Laboratories Inc. (NASDAQ:IPXL), Esterline Technologies Corp. (NYSE:ESL), iShares MSCI India (INDA), Post Holdings Inc. (NYSE:POST), Teleflex Inc. (NYSE:TFX), Laboratory Corp. of America Holdings (NYSE:LH), Acadia Healthcare Co. Inc. (NASDAQ:ACHC) and Pinnacle Foods Inc. (NYSE:PF).

Fisher’s investment style covers a mix of approaches and styles, including using technological applications and unique financial innovations and concepts his firm developed.

In an op-ed in USA Today on Oct. 22, Fisher shared that his outlook was bullish.

“Markets live to surprise most people, most of the time,” he said. “The surprise now will be stocks continuing to rise.”

Fisher also dismissed the idea that a high price-earnings ratio – now at a historically high 19.6 – or the Schiller PE ratio predicted any near-term direction for the market. Instead, he thinks stocks are “cheap” based on the flipped price-earnings ratio, also known as the earnings yield, which predicts annual returns of 5.1% for the market if earnings never increased.

“The only right time to fear valuations is when virtually no one does. With so many hanging hard to the notion that ‘expensive’ stocks won’t rise — it makes rising stocks the most likely possibility,” Fisher said. “Bet on it. The bull market is firmly intact.”

Fisher’s 10 biggest bets

Allscripts Healthcare Solutions (NASDAQ:MDRX)

Fisher Investment Management purchased 2,343,733 shares of Allscripts Healthcare Solutions in the third quarter. For the quarter, the stock’s average trading price was around $13 per share. The holding occupied 0.05% of the stock portfolio.

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Allscripts Healthcare Solutions Inc. has a market cap of $2.49 billion; its shares were traded around $13.79 with and P/S ratio of 1.50. Allscripts Healthcare Solutions Inc. had an annual average earnings growth of 2.8% over the past 10 years.

CoreSite Realty Corp. (NYSE:COR)

The firm bought 286,849 shares of CoreSite Realty Corp. in the third quarter. For the quarter, the stock’s average reading price was around $110 per share. The holding occupied 0.05% of the portfolio.

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CoreSite Realty Corp. has a market cap of $3.9 billion; its shares were traded around $114.03 with a P/E ratio of 65.54 and P/S ratio of 8.73. The trailing 12-month dividend yield of CoreSite Realty Corp. stocks is 2.98%. The forward dividend yield of CoreSite Realty Corp stocks is 3.17%. CoreSite Realty Corp. had an annual average earnings growth of 14.80% over the past five years.

Impax Laboratories Inc. (NASDAQ:IPXL)

The firm bought 1,494,038 shares of Impax Laboratories in the third quarter. For the quarter, the company’s trading price averaged around $19. The holding occupied 0.04% of the stock portfolio.

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Impax Laboratories Inc. has a market cap of $1.44 billion; its shares were traded around $19.45 with and P/S ratio of 1.72.

Esterline Technologies Corp. (NYSE:ESL)

The firm bought 207,178 shares of Esterline Technologies in the third quarter. For the quarter, the company’s trading price averaged around $90. The holding occupied 0.03% of the stock portfolio.

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Esterline Technologies Corp. has a market cap of $2.9 billion; its shares were traded around $96.60 with a P/E ratio of 21.58 and P/S ratio of 1.41. Esterline Technologies Corp. had an annual average earnings growth of 4.30% over the past 10 years.

iShares MSCI India (INDA)

The firm bought 436,000 shares of iShares MSCI India in the third quarter. For the quarter, the company’s trading price averaged around $34. The holding occupied 0.02% of the stock portfolio.

Post Holdings Inc. (NYSE:POST)

The firm bought 144,240 shares of Post Holdings Inc. in the third quarter. For the quarter, the company’s trading price averaged around $84. The holding occupied 0.02% of the portfolio.

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Post Holdings Inc. has a market cap of $5.52 billion; its shares were traded around $83.39 with and P/S ratio of 1.17.

Teleflex Inc. (NYSE:TFX)

The firm bought 48,617 shares of Teleflex Inc. in the third quarter. For the quarter, the company’s trading price averaged around $217. The holding occupied 0.02% of the portfolio.

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Teleflex Inc. has a market cap of $10.88 billion; its shares were traded around $241.62 with a P/E ratio of 46.28 and P/S ratio of 5.72. The trailing 12-month dividend yield of Teleflex Inc. stocks is 0.56%. The forward dividend yield of Teleflex Inc. stocks is 0.56%.

Laboratory Corp. of America Holdings (NYSE:LH)

The firm bought 65,497 shares of Laboratory Corp. of America Holdings in the third quarter. For the quarter, the company’s share price averaged $155. The holding occupied 0.01% of the stock portfolio.

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Laboratory Corp. of America Holdings has a market cap of $15.64 billion; its shares were traded around $153.64 with a P/E ratio of 21.52 and P/S ratio of 1.64. Laboratory Corp. of America Holdings had an annual average earnings growth of 8.10% over the past 10 years. GuruFocus rated Laboratory Corp. of America Holdings the business predictability rank of 5-star.

Acadia Healthline Co. Inc. (NASDAQ:ACHC)

The firm bought 204,996 shares of Acadia Healthline Co. Inc. in the third quarter. For the quarter, the company’s share price averaged $49. The holding occupied 0.01% of the portfolio.

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Acadia Healthcare Co. Inc. has a market cap of $2.76 billion; its shares were traded around $31.40 with a P/E ratio of 314 and P/S ratio of 0.97.

Pinnacle Foods Inc. (NYSE:PF)

The firm bought 156,476 shares of Pinnacle Foods in the third quarter. In the quarter, the company’s share price averaged $59. The holding occupied 0.01% of the stock portfolio.

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Pinnacle Foods Inc. has a market cap of $6.59 billion; its shares were traded around $55.44 with a P/E ratio of 36.02 and P/S ratio of 2.13. The trailing 12-month dividend yield of Pinnacle Foods Inc. stocks is 2.14%. The forward dividend yield of Pinnacle Foods Inc. stocks is 2.34%. Pinnacle Foods Inc. had an annual average earnings growth of 12.90% over the past five years.

See Ken Fisher (Trades, Portfolio)’s portfolio here.

About the author:

Holly LaFon
I'm a financial journalist with a master of science in journalism from Medill at Northwestern University.

Visit Holly LaFon's Website


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