Broyhill Asset Management, a boutique investment firm based in North Carolina, released its Q1 2020 Investor letter – a copy of which can be downloaded here. Established as a family office, the company invests with a long-term, objective, and rational perspective. You should check out Broyhill Asset Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Broyhill Asset Management spoke about Exxon Mobil Corp (NYSE:XOM) and B P Plc (NYSE:BP) stocks. Exxon Mobil and B P Plc are oil and gas companies. Year-to-date, Exxon Mobil Corp (NYSE:XOM) stock lost 33.3% and on June 11th it had a closing price of $46.18. Year-to-date, B P Plc (NYSE:BP) stock lost 34.9% and on June 11th it had a closing price of $24.07. Here is what Broyhill Asset Management said:
“As if a global pandemic wasn’t enough, during the quarter OPEC and Russia decided to add an oil crisis to the list of things for investors to panic about. After oil’s largest one-day decline in history, we established a small position in Exxon Mobile (XOM) and British Petroleum (BP)—two of the largest, best managed, and well capitalized companies in the industry.
We don’t have a short-term view on oil, but we do know that the best cure for low oil prices is low oil prices. And with the sector trading at its lowest level relative to the market in history, we are willing to bet that the current extremes in negative sentiment willrevert to more normal levels—and more normal oil prices—at some point. In the interim, we are being paid 10% annually to wait.”
In Q1 2020, the number of bullish hedge fund positions on Exxon Mobil Corp (NYSE:XOM) stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with XOM’s growth potential.
In Q1 2020, the number of bullish hedge fund positions on B P Plc (NYSE:BP) stock decreased by about 23% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with BP’s growth potential.
Our calculations showed that Exxon Mobil Corp (NYSE:XOM) and B P Plc (NYSE:BP) aren’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.
