Leon Cooperman, a value investor and founder of Omega Advisors, a hedge fund with approximately $10.7 billion under management recommended his 12 favorite stocks during the Delivering Alpha conference on Wednesday.
We are covering the conference throughout the day – sign up for our newsletter to ensure you get all the updates.
Cooperman divides stock picks into four categories
Cooperman arranged his stock picks into four categories such as growth at a reasonable price, income and growth, asset restructure plays, and high-risk/high-return.
According to him, the stocks under the growth at a reasonable price category include Actavis plc (NYSE:ACT), Citigroup Inc (NYSE:C) and Thermo Fisher Scientific Inc. (NYSE:TMO).
Under the income and growth category, Cooperman picked Atlas Energy LP (NYSE:ATLS), Gaming and Leisure Properties Inc (NASDAQ:GLPI), KKR & Co. L.P. (NYSE:KKR) and Nordic American Offshore Ltd (NYSE:NAO).
Cooperman said his asset structure stock picks include QEP Resources Inc (NYSE:QEP) and Supervalu Inc (NYSE:SVU) and his high-risk/high-return stock plays include Louis XIII Holdings Ltd (HKG:0577), Monitise Plc (LON:MONI) and SandRidge Energy Inc (NYSE:SD).
During the conference, Cooperman expressed that he is not very optimistic this year. According to him, “I’m not as optimistic about my list year as the market is fully valued.” He emphasized, “Buying something at the right price is half the game.”
He also believed that the economy is recovering. When asked about Bank of America Corp (NYSE:BAC), he admitted that he missed the stock as it was included in his list. He said, “I missed that one. I should’ve stepped into the same bathtub as Buffett.”
Cooperman was referring to the time when Warren Buffett stated that he decided to make an investment in Bank of America Corp (NYSE:BAC) after taking a bath.
Delivering Alpha – Cooperman – Stock performance of previous stock picks
Some of stock recommendations of Cooperman were repeats from last year such as Thermo Fisher Scientifiic Inc. (NYSE:TMO) and SandRidge Energy Inc (NYSE:SD). Both stocks delivered a 12-month return of 37.2% and 43.12%, respectively.
CNBC noted that all of the 10-stock recommendations of Cooperman in 2012 gained while eight out ten delivered returns last year. The eight that delivered returns last year include:
1. Express Scripts Holding Company (NASDAQ:ESRX) 6.8%
2. QUALCOMM Inc (NASDAQ:QCOM) 34.84%
3. Thermo Fisher Scientific Inc (NYSE:TMO) 37.29%
4. QUALICORP SA (OTCMKTS:QUAIF) 71.18%
5. SandRidge Energy Inc (NYSE:SD) 43.12%
6. Arbor Realty Trust Inc (NYSE:ABR) 9.48%
7. Chimera Investment Corporation (NYSE:CIM) 10.49
8. KKR Financial Holdings LLC (NYSE:KFN) 3.78%