Billionaire Leon Cooperman And Insiders Are Bullish About These Stocks

|
 |  Includes: AAPL, BSX, CNBC, ETFC, KKR, MMR, QCOM, RIG, SPGI, TCRD, UAL
by: Insider Monkey

Inside information pays. Corporate insiders have material non-public information about their companies. Sometimes they trade on illegal information. They may get caught if they aren’t smart enough and sent to jail because of illegal insider trading. But ordinary investors can benefit from such information, without breaking any laws, simply by imitating insiders’ purchases.

In this article, we are going to focus on the stocks insiders and Leon Cooperman are bullish about. Cooperman is the billionaire Chairman and CEO of Omega Advisors, a hedge fund he founded in 1991. Prior to that, Cooperman spent 25 years at Goldman Sachs. After he graduated from the MBA program at Columbia, he joined the asset management division at Goldman and later became the Chairman and CEO of GS Asset Management.

Below we compiled a list of stocks with insider purchases during the past month and were in Omega Advisors’ 13F portfolio at the end of September.

Company Name

Ticker

Value

Activity

Insiders

K K R FINANCIAL

KFN

114651

0%

1

BOSTON SCIENTIFIC

BSX

98846

86%

3

MCGRAW HILL COS

MHP

92176

New

1

E TRADE FINANCIAL

ETFC

90489

33%

2

APPLE INC

AAPL

78630

78%

1

TRANSOCEAN LTD

RIG

70657

32%

2

QUALCOMM INC

QCOM

67075

New

1

K K R & CO L P

KKR

55340

60%

1

UNITED CONTINENTAL

UAL

31885

-55%

1

T H L CREDIT INC

TCRD

14443

0%

3

MCMORAN EXPLORATION

MMR

13545

4097%

1

CENTER BANCORP INC

CNBC

5259

0%

4

Click to enlarge

During the third quarter, Cooperman opened some new positions. For example, he initiated a brand new $92 million position in McGraw Hill Cos Inc (MHP). Barry Rosenstein's JANA Partners also had $400+ million invested in MHP. The stock was also purchased by one insider during the past month. On December 13, Richard Thornburgh bought 5000 shares at $42.8488 per share. Now MHP is trading at $44.32 per share. It seems Thomburgh knows when to buy the stock of his company. In addition to McGraw Hill, Thomburgh is also a director at Reynolds American Inc (NYSE:RAI). He bought 5000 shares of RAI at $40.9384 on December 13 as well, and RAI is now trading at $41.27.

Another new position in Cooperman’s portfolio is Qualcomm Inc (NASDAQ:QCOM). In the third quarter, Omega Advisors initiated a $67 million position in QCOM shares. QCOM was also purchased by one insider in the past month. Francisco Ros purchased 275 shares at $53.7867 on November 28. Currently QCOM is trading at $54.42 per share. Ros also bought 200 shares at $49.3167 on September 2. The stock returned more than 10% since then. Tiger Cub Stephen Mandel is also bullish about QCOM. At the end of September, his Lone Pine Capital invested $351 million in QCOM.

One mega-cap stock that Cooperman and insiders are bullish about is Apple Inc (NASDAQ:AAPL), a stock that is also very popular among hedge funds. Our statistics show that there are 125 hedge funds with an AAPL position in their 13F portfolios at the end of the third quarter. The stock was also bought by one insider over the past month. Robert Iger bought 1370 shares at $374.4856 on November 29. On the same day, Iger also purchased another 1300 shares at $375.3292. In less than one month, AAPL’s price increased over $20 to $398.57 per share.

Other stocks that both Cooperman and insiders like include KKR Financial (KFN), Boston Scientific Corp (NYSE:BSX), E Trade Financial Corp (NASDAQ:ETFC), Transocean Ltd (NYSE:RIG), KKR & Co, and United Continental Holdings Inc (NYSE:UAL). We like the stock picks of Cooperman and corporate insiders. Our research has shown that by focusing on the top stock picks of insiders and successful hedge fund managers, investors are more likely to outperform the market in the long term.



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