Miller Value Partners recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Miller Value Partners Opportunity Equity Fund posted a return of -38.4% for the quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Miller Value Partners 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, Miller Value Partners highlighted a few stocks and Chemours Co (NYSE:CC) is one of them. Chemours is a chemical company. Year-to-date, Chemours Co (NYSE:CC) stock lost 21.9% and on June 10th it had a closing price of $16.05. Here is what Miller Value Partners said:
“Chemours is another name that we’ve followed for many months. It’s a chemical company spun out of DuPont. It traded down from $40 a year ago to the mid-teens in February, mostly due to concerns about environmental liabilities and a down cycle in one of its businesses. A good quarter caused it to trade up to $20 before the market malaise took it to $7 at the lows. David Einhorn, the noted value investor, made great money on it after buying it at $3 and selling it at $57. He re-entered his position around $23-24 saying it baked in a good margin of safety. If it was good there, it must be fantastic at the current level of $10-11. We think it’s worth somewhere in the low $20’s. At 4x this year and 3x next year’s earnings, with a 9.5% dividend yield, we think you are getting a great deal on a leader in its markets.”
In Q1 2020, the number of bullish hedge fund positions on Chemours Co (NYSE:CC) stock increased by about 10% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Chemours growth potential. Our calculations showed that Chemours Co (NYSE:CC) isn’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.
