The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.NEW YORK ( Insider Monkey) -- Most investors are interested in what hedge fund managers recommend today. Insider Monkey, your source for free
Millicom International Cellular ( MICC): Highside Capital's Lee Hobson recommended buying Millicom on the expectation that the company will expand into emerging markets. MICC returned 58% since then, beating SPY's 47% return. Ritchie Bros. Auctioneers ( RBA): Lee Hobson also recommended shorting Ritchie Bros because the company was facing falling merchandise prices and the market's profit growth expectations were too high. He was right. RBA's stock price increased by only 16% vs. SPY's 47% increase. If one had bought MICC and sold RBA to form a market neutral portfolio, he would have made 42%. Bank of America ( BAC): Kingdon Capital Management's Mark Kingdon recommended
Bank of America because of its huge potential. John Paulson made the same recommendation later in 2009. Unfortunately, BAC returned 31%, underperforming the SPY by 16 percentage points. Citigroup ( C) would have been a better recommendation. Moody's ( MCO): David Einhorn is the main reason why Ira Sohn Conference is so famous. In 2008, he recommended shorting Lehman Brothers. In 2009, Einhorn recommended shorting Moody's . Moody's gained 15%, underperforming the SPY by 32 percentage points. This was another great recommendation. Warren Buffett was aware of Moody's grim prospects and he has been selling his holdings. Valeant ( VRX): HealthCor's Joseph Healey was expecting Valeant to double in the following 12 to 18 months. That was in May 2009. We hear these kinds of bullish statements all the time, and usually they don't come true. This time was different. Joseph Healey's prediction was actually very conservative. Valeant increased by 232% since then. Hologic ( HOLX): HealthCor was a $3 Billion healthcare fund. Healey's second recommendation was Hologic. He also said that he was expecting this to double. The stock didn't double but went up by 58% since then, beating the SPY by 11 percentage points. Life Technologies ( LIFE): Joseph Healey's third recommendation at the Ira Sohn Conference was Life Technologies. Healey predicted a 60% increase in LIFE. The stock returned 38%, underperforming the SPY by 9 percentage points. Glenview's Larry Robbins and Maverick's Lee Ainslie have LIFE in their portfolios as well. Long/short hedge funds are better stock pickers. Their best stock picks perform much better than their usual stock picks. If one had bought the long stock recommendations and sold the short stock recommendations made by these hedge fund managers , they would have achieved a triple-digit return by assuming a much smaller risk than the market. Insider Monkey, your source for free insider trading data, follows hedge funds and developed a methodology to determine their best stock picks. Stay tuned. This article was originally published in Insider Monkey.