Bill Miller And Insiders Are Bullish On These Stocks

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 |  Includes: AAPL, AGO, BBY, BLK, BSX, CELG, F, FIBK, FITB, KKR, MDAS, NLY, PMT, QCOM, SCHW, SLB, UAL, XCO, XL
by: Insider Monkey

Bill Miller, who joined Legg Mason Capital Management in 1981 and later became the chairman and CIO of the fund, recently announced that he is retiring. Named “The Greatest Money Manager of the 1990s” by Money Magazine, Miller led Legg Mason achieved better-than-market returns in 15 consecutive years from 1991 to 2005. After that, the fund did not perform well. But just like other funds, Legg Mason devotes significant resources in researching stocks. Sometimes it may also have access to material non-public information. Trade on such information is illegal, but fund managers and insiders can still benefit from the information even when they do not act directly on it. They can postpone their purchases when they know bad news will be released, and they will not sell the stock if they have inside information that the company is doing better than expected.

Below we compiled a list of stocks both Miller and insiders are bullish on. All stocks were purchased by at least one insider over the past month, and Miller invested more than $10 million in these stocks.

Company Name

Ticker

Value

Insiders

APPLE INC

(NASDAQ:AAPL)

227803

1

BLACKROCK INC

(NYSE:BLK)

160254

1

UNITED CONTINENTAL

(NYSE:UAL)

155154

1

CELGENE CORP

(NASDAQ:CELG)

154405

2

QUALCOMM INC

(NASDAQ:QCOM)

147497

1

ANNALY CAPITAL

(NYSE:NLY)

116860

1

FORD MOTOR CO

(NYSE:F)

77650

1

BEST BUY COMPANY

(NYSE:BBY)

77031

1

ASSURED GUARANTY LTD

(NYSE:AGO)

47715

1

K K R FINANCIAL

(KFN)

39077

1

CHARLES SCHWAB

(NYSE:SCHW)

25328

1

FIFTH THIRD BANCORP

(NASDAQ:FITB)

25206

1

SCHLUMBERGER LTD

(NYSE:SLB)

22374

2

PENNYMAC MORTGAGE INV

(NYSE:PMT)

20258

1

X L GROUP PLC

(NYSE:XL)

19854

1

BOSTON SCIENTIFIC CORP

(NYSE:BSX)

17916

3

MEDASSETS INC

(NASDAQ:MDAS)

16244

2

FIRST INTERSTATE BANCSYSTEM

(NASDAQ:FIBK)

13062

2

E X C O RESOURCES INC

(NYSE:XCO)

10829

1

Click to enlarge

Apple Inc (AAPL) is the biggest position in the 13F portfolio of Legg Mason at the end of September. The fund had $228 million invested in this stock. AAPL was bought by one insider during the past month. Robert Iger, the director at Apple, purchased 1370 shares at $374.4856 and another 1300 shares at $375.3292 on November 29. AAPL is currently trading at $379.26. It has a market cap of $353.35B and a P/E ratio of 13.74. Stephen Mandel’s Lone Pine Capital also invested $785 million in AAPL shares.

Another stock both Miller and insiders are bullish on is Blackrock Inc (BLK), one of the best investment management firms in the world. As of September 30, Legg Mason invested $160 million in BLK and one insider purchased the stock during the past month. Bank of America continuously bought BLK during the past few months. The most recent purchase occurred on December 6, when Bank of America bought 105 shares in total at around $174 per share. BLK is now trading at $168.32. It has a market cap of $29.87B and a P/E ratio of 13.17. Billionaire John Paulson also had $146 million invested in BLK.

During the third quarter, Legg Mason almost doubled its stakes in Annaly Capital Management Inc (NLY). It increased its NLY position by 91% to $117 million. NLY was bought by one insider in the past month. Rose- Marie Lyght bought 500 shares at $26.29 on November 14. Now NLY is trading at $16.24. It has a market cap of $15.73B and a P/E ratio of 8.45. Charles Clough’s Clough Capital Partners also invested $22 million in NLY.

Other stocks both Miller and insiders are bullish about include: United Continental Holdings (UAL), Celgene Corp (CELG), Qualcomm Inc (QCOM), Ford Motor Co (F), Best Buy Company Inc (BBY), Assured Guaranty Ltd (AGO), KKR Financial Holdings LLC (KFN), Schwab Charles Corp (SCHW), Fifth Third Bancorp (FITB), Schlumberger Ltd (SLB), Pennymac Mortgage Investment Trust (PMT), XL Group Plc (XL), Boston Scientific Corp (BSX), Medassets Inc (MDAS), First Interstate Bancsystem Inc (FIBK), and EXCO Resources Inc (XCO). We urge investors to focus on the stocks both insiders and hedge funds are bullish on. Our research has shown that these stocks manage to outperform the market on the average.

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