In this article, we discuss the 11 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management based on Q2 holdings of the fund. If you want to skip our detailed analysis of Gendell’s history, investment philosophy, and hedge fund performance, go directly to the 5 Stocks to Buy Now According to Jeffrey Gendell’s Tontine Asset Management.
Jeffrey Gendell established the Connecticut-based hedge fund Tontine Asset Management in 1997. He graduated from Duke University with a bachelor’s degree and completed his MBA from the Wharton School of the University of Pennsylvania. Previously he was the Principal at Smith Barney Inc. Currently, he is the managing member at Tontine Asset Management, and is a macro-investor.
The hedge fund’s 13F portfolio is valued at approximately $1.13 billion as of the second quarter of 2021.
As of the second quarter of 2021, Tontine Asset Management has stakes in several big companies like Bank of America Corporation (NYSE: BAC), Citigroup Inc. (NYSE:C), and West Fraser Timber Co. Ltd. (NYSE: WFG).
In Bank of America Corporation (NYSE: BAC), Tontine Asset Management owns 282,500 shares. The investment covers 1.03% of the fund’s portfolio. On July 21, Bank of America Corporation (NYSE: BAC) declared a quarterly dividend of $0.21 per share, a 17% increase from a prior dividend of $0.18. On July 6, Keefe Bruyette analyst David Konrad initiated coverage on Bank of America Corporation (NYSE: BAC) with a “Market Perform” rating and gave the price target of $40. Bank of America Corporation (NYSE: BAC) shares have offered investors returns of 59.85% in the past year.
Another notable stock in Jeffrey Gendell’s portfolio is Citigroup Inc. (NYSE: C). The investor owns a $25.60 million stake in the company. Citigroup Inc. (NYSE: C) is up 38% over the last 12 months.
West Fraser Timber Co. Ltd. (NYSE: WFG) is a new arrival on Jeffrey Gendell’s portfolio, as his hedge fund bought about 125,600 shares of the company, worth over $9 million. On July 28, West Fraser Timber Co. Ltd. (NYSE: WFG) declared earnings for the second quarter of 2021. It reported earnings per share of $12.32, beating the estimates by $0.07. The revenue over the period was $3.8 billion, up 196.9% YoY, surpassing the market predictions by $140 million. On June 8, West Fraser Timber Co. Ltd. (NYSE: WFG) declared a quarterly dividend of C$0.25 per share, which is an increase from the previous quarterly dividend of C$0.20 per share.
Jeffrey Gendell of Tontine Asset Management
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Here is a list of stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. We used Gendell’s 13F portfolio for the second quarter 2021 for this analysis.
Stocks to Buy Now According to Jeffrey Gendell’s Tontine Asset Management
11. HC2 Holdings, Inc. (NYSE: HCHC)
Gendell’s Stake Value: $13,087,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 1.15%
Number of Hedge Fund Holders: 13
HC2 Holdings, Inc. (NYSE: HCHC) supplies insurance, life sciences, construction, broadcasting, and other services globally. It was founded in 1994 and is placed tenth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. HC2 Holdings, Inc. (NYSE: HCHC) shares have gained about 41.06% in value over the last 12 months.
On August 9, HC2 Holdings, Inc. (NYSE: HCHC) declared a cash dividend of approximately $5 million, or $1.297 per share. On August 6, HC2 Holdings, Inc. (NYSE: HCHC) announced earnings for the second quarter of 2021. It posted revenue of $243.8 million, up 34.1% YoY.
Tontine Asset Management holds 3.29 million shares in HC2 Holdings, Inc. (NYSE: HCHC) worth $13.09 million, representing 1.15% of their portfolio. The hedge fund increased its stake in the firm by 5% in the second quarter of 2021. Hedge funds are loading up on HC2 Holdings, Inc. (NYSE: HCHC), as Insider Monkey’s data shows that 13 hedge funds held stakes in the company as of the second quarter of 2021, compared to 11 funds at the end of the first quarter of 2021.
Just like Bank of America Corporation (NYSE: BAC), Citigroup Inc. (NYSE: C), and West Fraser Timber Co. Ltd. (NYSE: WFG), HC2 Holdings, Inc. (NYSE: HCHC) is one of the best stocks to buy according to Jeffrey Gendell’s Tontine Asset Management.
Cedar Creek Partners LLC, in its fourth-quarter 2020 investor letter, mentioned HC2 Holdings, Inc. (NYSE: HCHC). Here is what the fund said:
“We also closed out our position in HC2 Holdings (HCHC). We earned a nice gain, but in hindsight, we should have waited until after the rights offering to sell. While we know we can never perfectly time bottoms or tops and don’t try, we should have done better on that one.”
10. Avadel Pharmaceuticals plc (NASDAQ: AVDL)
Gendell’s Stake Value: $13,703,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 1.21%
Number of Hedge Fund Holders: 16
Avadel Pharmaceuticals plc (NASDAQ: AVDL) is a biopharmaceutical company in the United States. It was incorporated in 2015, and it stands tenth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. Avadel Pharmaceuticals plc (NASDAQ: AVDL) shares have returned 16.90% to investors over the past 12 months.
On August 9, Avadel Pharmaceuticals plc (NASDAQ: AVDL) posted earnings for the second quarter of 2021. It reported earnings per share of -$0.33, missing the estimates by $0.02. On June 9, Avadel Pharmaceuticals plc (NASDAQ: AVDL) released an additional post-hoc analysis of data from the FT218 Phase 3 REST-ON study. In individuals with narcolepsy subtypes 1 (NT1, with cataplexy) and 2 (NT2, without cataplexy), FT218 showed a statistically significant reduction in excessive daytime sleepiness (EDS) at all dosages tested when compared to placebo.
Tontine Asset Management holds 2.04 million shares in Avadel Pharmaceuticals plc (NASDAQ: AVDL) worth over $13.70 million, representing 1.21% of their portfolio. In the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes in Avadel Pharmaceuticals plc (NASDAQ: AVDL), up from 15 the preceding quarter.
Just like Bank of America Corporation (NYSE: BAC), Citigroup Inc. (NYSE: C), and West Fraser Timber Co. Ltd. (NYSE: WFG), Avadel Pharmaceuticals plc (NASDAQ: AVDL) is one of the best stocks to buy according to Jeffrey Gendell’s Tontine Asset Management.
9. SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD)
Gendell’s Stake Value: $14,780,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 1.3%
Number of Hedge Fund Holders: N/A
SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) is an exchange-traded fund. It was founded in 2015, and it stands ninth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management.
On June 18, SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) announced a quarterly distribution of $0.3989.
Tontine Asset Management holds 225,550 shares in SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE:SPYD) worth $14.78 million, representing 1.3% of their portfolio. The hedge fund increased its stake in the firm by 783% in the second quarter of 2021.
Just like Bank of America Corporation (NYSE: BAC), Citigroup Inc. (NYSE: C), and West Fraser Timber Co. Ltd. (NYSE: WFG), SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) is one of the best stocks to buy according to Jeffrey Gendell’s Tontine Asset Management.
8. Alpha Metallurgical Resources, Inc. (NYSE: AMR)
Gendell’s Stake Value: $586,585,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 1.86%
Number of Hedge Fund Holders: 19
Alpha Metallurgical Resources, Inc. (NYSE: AMR) functions as a mining company. It was incorporated in 2016 and is placed eighth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. Alpha Metallurgical Resources, Inc. (NYSE: AMR) shares have offered investors returns of 806.17% in the past 12 months.
On August 6, Alpha Metallurgical Resources, Inc. (NYSE: AMR) announced results for the second quarter of 2021. It posted earnings per share of -$1.01, missing the expectations by $0.24. Revenue over the period was $395.27 million, up 11.7% YoY, beating the market predictions by $17.32 million. On July 14, B. Riley analyst Lucas Pipes raised the price target on Alpha Metallurgical Resources, Inc. (NYSE: AMR) to $21 from $15 and maintained a “Neutral” rating on the shares.
Jeffrey Gendell’s Tontine Asset Management holds 821,935 shares in Alpha Metallurgical Resources, Inc. (NYSE: AMR), worth over $21.07 million. This represents 1.86% of their portfolio. Tontine Asset Management’s stake in Alpha Metallurgical Resources, Inc. (NYSE: AMR) decreased by 9% in the second quarter of 2021, latest data reveals.
Just like Bank of America Corporation (NYSE: BAC), Citigroup Inc. (NYSE: C), and West Fraser Timber Co. Ltd. (NYSE: WFG), Alpha Metallurgical Resources, Inc. (NYSE: AMR) is one of the best stocks to buy according to Jeffrey Gendell’s Tontine Asset Management.
7. Camping World Holdings, Inc. (NYSE: CWH)
Gendell’s Stake Value: $22,820,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 2.02%
Number of Hedge Fund Holders: 20
Camping World Holdings, Inc. (NYSE: CWH) operates as a recreational vehicle (RV) and outdoor store through its subsidiaries. It was founded in 1966 and ranks seventh on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. Camping World Holdings, Inc. (NYSE: CWH) shares have offered investors returns of 24.64% in the past 12 months.
On August 23, Camping World Holdings, Inc. (NYSE: CWH) announced a quarterly dividend of $0.50 per share, which was a 100% increase from prior its dividend of $0.25. On August 4, Baird analyst Craig Kennison upgraded Camping World Holdings, Inc. (NYSE: CWH) to “Outperform” from “Neutral” and set a price target of $56.
Tontine Asset Management holds 556,718 shares in Camping World Holdings, Inc. (NYSE: CWH) worth over $22.82 million, representing 2.02% of their investment portfolio. The hedge fund has increased its stake in Camping World Holdings, Inc. (NYSE: CWH) by 35% in the second quarter of 2021. As of the second quarter of 2021, 20 hedge funds in Insider Monkey’s database of 873 funds held stakes in Camping World Holdings, Inc. (NYSE: CWH) compared to 24 funds in the first quarter.
Just like Bank of America Corporation (NYSE: BAC), Citigroup Inc. (NYSE: C), and West Fraser Timber Co. Ltd. (NYSE: WFG), Camping World Holdings, Inc. (NYSE: CWH) is one of the best stocks to buy according to Jeffrey Gendell’s Tontine Asset Management.
In its fourth-quarter 2020 Investor Letter, Wasatch Core Growth Fund highlighted a few stocks, and Camping World Holdings Inc. (NYSE: CWH) is one of them. Here is what the fund said:
“A relative underperformer for the quarter was Camping World Holdings, Inc. (CWH), which operates more than 160 retail locations specializing in recreational vehicles and associated parts, accessories, and services. Even before the pandemic, similar to our analysis for YETI, we had already recognized the trends favoring Camping World’s market segment. Although the stock was relatively flat for the quarter, we think the price is still reasonable based on strong consumer interest and the business improvements made by the management team in recent years.”
6. BlueLinx Holdings Inc. (NYSE: BXC)
Gendell’s Stake Value: $22,876,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 2.02%
Number of Hedge Fund Holders: 15
BlueLinx Holdings Inc. (NYSE: BXC) supplies residential and commercial building goods in the United States through its subsidiaries. It was incorporated in 2004 and is placed sixth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. BlueLinx Holdings Inc. (NYSE: BXC) shares have offered investors more than 200.87% in returns over the past 12 months.
On August 23, Loop Capital analyst Jeffrey Stevenson raised the price target on BlueLinx Holdings Inc. (NYSE: BXC) to $65 from $52 and maintained a “Hold” rating on the shares. On August 3, BlueLinx Holdings Inc. (NYSE: BXC) declared earnings for the second quarter of 2021. It announced earnings per share of $11.61, surpassing the estimates by $6.44.
The hedge fund chaired by Jeffrey Gendell holds 454,973 shares in BlueLinx Holdings Inc. (NYSE: BXC) worth $22.88 million. Tontine Asset Management’s stake in BlueLinx Holdings Inc. (NYSE: BXC) shares increased by 3% in the second quarter of 2021. Out of the hedge funds being tracked by Insider Monkey, Portolan Capital Management is a leading shareholder in BlueLinx Holdings Inc. (NYSE: BXC) with 493,386 shares worth $24.81 million.
Just like Bank of America Corporation (NYSE: BAC), Citigroup Inc. (NYSE: C), and West Fraser Timber Co. Ltd. (NYSE: WFG), BlueLinx Holdings Inc. (NYSE: BXC) is one of the best stocks to buy according to Jeffrey Gendell’s Tontine Asset Management.
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Disclosure: None. 11 Stocks to Buy Now According to Jeffrey Gendell’s Tontine Asset Management is originally published on Insider Monkey.
