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Stephen Mandel is the founder of Lone Pine Capital. He has $17 billion assets under management and his personal wealth is about one tenth of that. The fund returned about 23% during the past 11 years, beating the S&P 500 index by over 20 percentage points per year. Hedge funds devote significant resources to researching stocks. Additionally, corporate insiders have material non-public information and they sometimes trade based on such information. Other times they have an edge because they know their companies and industries better than almost all other investors. We believe that by imitating the stock picks of these smartest investors in the world, investors are more likely to beat the market in the long term.

Below we compiled a list of stocks both Mandel and insiders are bullish about. All stocks are in Mandel’s portfolio at the end of June and were purchased by at least one insider during the past three months.

Security

Ticker

Value (x$1000)

No. of Insiders

Return since June

Ameriprise Financial Inc

AMP

$116,299

2

-28.46%

Emerson Electric Co

EMR

$53,080

4

-18.69%

Royal Caribbean Cruises

RCL

$194,943

4

-38.14%

Schlumberger Ltd

SLB

$353,081

1

-23.61%

Sensata Technologies Holding N V

ST

$191,224

2

-24.22%

Transdigm Group

TDG

$275,987

1

-7.06%

U S Bancorp Del

USB]

$181,712

1

-3.66%

Ameriprise Financial Inc (NYSE:AMP): Ameriprise Financial provides financial planning, products and services. Mandel had $116 million of the stock at the end of June and it was purchased by two insiders over the past three months. It has a market cap of $9.7B, a P/E ratio of 8.27, and lost 28.46% since the end of June. Ken Griffin also had $61 million in AMP (see Ken Griffin’s top stock picks).

Emerson Electric Co (NYSE:EMR): Emerson Electric is engaged in designing and supplying product technology and delivering engineering services and solutions. Mandel initiated a brand new $53 million of EMR over the second quarter and the stock was purchased by four insiders during the past three months. It has a market cap of $33.8B, a P/E ratio of 15.03, and lost 18.69% since the end of June. Ken Fisher holds the largest position in EMR (check out Ken Fisher’s favorite stock picks).

Royal Caribbean Cruises Ltd (NYSE:RCL): Royal Caribbean is a cruise company. Mandel increased his position in the stock by 34% to $195 million during the second quarter and the stock was purchased by four insiders over the past three months. It has a market cap of $5.0B, a P/E ratio of 8.85, and lost 38.14% since the end of June. John W. Rogers had nearly $90 million invested in RCL. Ken Griffin also invested $40 million in the stock.

Schlumberger Ltd (NYSE:SLB): Schlumberger is a supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry. Mandel increased his position in the stock by 6% to $353 million during the second quarter and the stock was purchased by one insider over the past three months. It has a market cap of $88.8B, a P/E ratio of 16.2, and lost 23.61% since the end of June. Ken Fisher also had over $700 million invested in SLB.

Sensata Technologies Holding N V (NYSE:ST): Sensata Technologies is engaged in the development, manufacture and sale of sensors and controls. Mandel increased his position in the stock by 37% to $191 million during the second quarter and the stock was purchased by two insiders over the past three months. It has a market cap of $5.0B and lost 24.22% since the end of June. James Crichton and Adam Weiss invested nearly $400 million in ST shares.

Transdigm Group Inc (NYSE:TDG): TD Group is a global designer, producer and supplier of highly engineered aircraft components. Mandel increased his position in the stock by 5% to $276 million during the second quarter and the stock was purchased by one insider over the past three months. It has a market cap of $4.3B, a P/E ratio of 33.24, and lost 7.06% since the end of June. Alan Fournier also invested over $200 million in TDG shares.

U S Bancorp Del (NYSE:USB): U.S. Bancorp is a multi-state financial services holding company. Mandel increased his position in the stock by 9% to $182 million during the second quarter and the stock was purchased by one insider over the past three months. It has a market cap of $47.0B, a P/E ratio of 11.7, and lost 3.66% since the end of June. Jean Marie Eveillard, Andreas Halvorsen and Ric Dillon were also main holders of USB stocks (check out Eveillard’s top stock picks).

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