5 Energy Stocks to Buy Today According to Richard S. Pzena’s Hedge Fund

1. General Electric Company (NYSE:GE)

Pzena Investment Management’s Stake Value: $1 billion

Percentage of Pzena Investment Management’s 13F Portfolio: 3.92%

Number of Hedge Fund Holders: 58

General Electric Company (NYSE:GE) is an American company that owns a host of businesses. These businesses include the General Electric Power and General Electric Renewable Energy divisions, which are among the largest of their kind in the world. GE Energy produces energy through gas and steam turbines, while GE Renewable focuses on wind and hydro power.

As the fourth quarter of last year came to an end, Pzena Investment Management held a $1 billion stake in General Electric Company (NYSE:GE) through owning 11 million shares. A Q4 2021 Insider Monkey survey of 924 hedge funds revealed that 58 had also owned the company’s shares.

General Electric Company (NYSE:GE) raked in $20 billion in revenue and $0.92 in non-GAAP EPS for its fiscal fourth quarter, in a mixed bag of results that saw it beat analyst estimates for EPS but miss them for revenue. The company reached an agreement with EDF Group in February 2022 through which it would supply the latter with nuclear steam power turbines.

General Electric Company (NYSE:GE)’s largest investor according to Insider Monkey’s research is Andreas Halvorsen’s Viking Global which owns 18 million shares worth $1.7 billion.

Vulcan Value Partners mentioned the company in its third quarter 2021 investor letter. Here is what the fund said:

“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated to more discounted companies.”

Disclosure: None. You can also take a look at 15 Most Valuable UK Companies in the World and 10 Best Solar Energy Stocks To Buy Now.

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