Ken Fisher's Favorite Stock Picks

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 |  Includes: ABB, AMAT, AMOV, APC, BASFY, BHP, BIDU, BNS, CAT, CEO, COST, DOV, EMC, FCX, LQD, NOV, NSRGY, ORCL, OXY, PPG, PZZA, RTPPF, RYAAY, SIEGY, SLB, SNY, STLD, UN, UTX, XOM, XRX
by: Insider Monkey

Ken Fisher is the author of seven money management books, three of which are New York Times bestsellers. He's been writing the Portfolio Strategy column for Forbes for more than 26 years, and he's the fourth-longest running columnist in Forbes' history. He is currently ranked #252 on the 2010 Forbes 400 list of richest Americans. He founded private investment firm Fisher Investments in 1979. He is also one of the fund managers we follow closely.

In his article dated April 20th 2011, he talked about the CEO role in a company's success and he listed his favorite CEOs as Warren Buffett, Steve Jobs, Larry Ellison, Richard Branson, Howard Schultz and Jeff Bezos. He said that smart investors seek to find future hero CEOs early. He also listed some of the companies which are managed by hero CEOs such as Ryanair Holdings (NASDAQ:RYAAY), Costco (NASDAQ:COST), Xerox (NYSE:XRX), Steel Dynamics (NASDAQ:STLD) and Papa John's International (NASDAQ:PZZA).

According to 13F filings, Fisher Asset Management has had at least 539 securities with a total value of $38.3 billion as of March 31st 2011. In the first quarter of 2011, he sold 65 securities and bought 42 new securities. Fisher sold 319 million worth of America Movil-ADR Series L (NASDAQ:AMOV) shares in the first quarter. Here is how his top 25 positions performed during the past two months:

Top 25 Holdings

Stock

Value (Millions)

Return
Since Mar 31,2010

OCCIDENTAL PETROLEUM CORP (NYSE:OXY)

863.5

1.8%

SIEMENS AG-SPONS ADR (SI)

858.4

-0.3%

BASF SE-SPON ADR (OTCQX:BASFY)

819.6

12.7%

CATERPILLAR INC (NYSE:CAT)

797.4

-0.5%

ANADARKO PETROLEUM CORP (NYSE:APC)

788.5

-8.3%

SCHLUMBERGER LTD (NYSE:SLB)

752.7

-11.4%

FREEPORT-MCMORAN COPPER (NYSE:FCX)

717.5

-9.3%

ORACLE CORP (NYSE:ORCL)

678.7

4.5%

APPLIED MATERIALS INC (NASDAQ:AMAT)

626.6

-2.5%

PPG INDUSTRIES INC (NYSE:PPG)

604.6

-4.5%

ISHARES IBOXX INV GR CORP BD (NYSEARCA:LQD)

599.4

3.2%

BHP BILLITON LTD-SPON ADR (NYSE:BHP)

596.5

-0.4%

EXXON MOBIL CORP (NYSE:XOM)

590.2

-1.7%

EMC CORP/MASS (NYSE:EMC)

570.2

2.1%

NESTLE SA-SPONS ADR FOR REG (OTCPK:NSRGY)

545.0

10.3%

NATIONAL OILWELL VARCO INC (NYSE:NOV)

544.7

-13.5%

UNITED TECHNOLOGIES CORP (NYSE:UTX)

520.7

5.4%

BANK OF NOVA SCOTIA (NYSE:BNS)

502.3

-2.5%

DOVER CORP (NYSE:DOV)

499.7

-0.5%

ABB LTD-SPON ADR (NYSE:ABB)

493.7

10.3%

BAIDU INC - SPON ADR (NASDAQ:BIDU)

491.7

2.5%

UNILEVER N V -NY SHARES (NYSE:UN)

478.0

3.7%

SANOFI-AVENTIS SPONSORED ADR (NYSE:SNY)

469.4

12.3%

CNOOC LTD-ADR (NYSE:CEO)

459.9

-8.4%

RIO TINTO PLC-SPON ADR (OTCPK:RTPPF)

455.4

-4.6%

Value Weighted Return of Top 25 Holdings

15,324

-0.1%

SPY

N/A

1.2%

Click to enlarge

Eleven of Fisher's top positions managed to beat the market. Fisher's new stock picks have lost 0.1% since the end of first quarter 2011, vs. a 1.2% gain for the SPY. OXY was Fisher's biggest new investment at the end of March 2011. OXY has gained 1.8% since then, outperforming the SPY’s 1.2% return. Fisher has $863.5 million invested in OXY. Billionare T. Boone Pickens also has OXY shares in his portfolio.

BASFY has had one of the best performances in his portfolio since the end of March. Fisher had $819.7 million in BASFY shares at the end of March. BASFY has gained 12.7% in the last two months, beating the SPY by a large margin. The worst performing stock among the top holdings was NOV, losing 13.5% since the end of March. T. Boone Pickens is extremely bullish about National Oilwell (NOV) which is also listed as one of the 30 stocks that are expected to beat the S&P 500 by three percentage points.

Fisher’s portfolio is tilted toward emerging markets, European stocks and mostly to commodity producers. Passport Capital’s John Burbank, George Soros and Perry Capital’s Richard Perry had large short EEM positions at the end of December. The huge decline in energy prices last week hurt Fisher's performance since the end of first quarter. If Jim Rogers and Ray Dalio are right about their predictions about the U.S. dollar, then Ken Fisher's stocks recover their recent losses and will make billions for his investors.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.