Non-Recurring and Unexpected Losses Dragged Brighthouse Financial (BHF) in Q2

Greenlight Capital, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Greenlight Capital funds returned 2.8% net of fees and expenses, compared to 4.3% for the S&P 500 index. The longs in the portfolio underperformed the S&P 500 and the shorts outperformed the inverse of the S&P 500. However, the portfolio maintained a neutral net long exposure of about 40%. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Greenlight Capital highlighted stocks like Brighthouse Financial, Inc. (NASDAQ:BHF) in the second quarter 2024 investor letter. Brighthouse Financial, Inc. (NASDAQ:BHF) offers annuity and life insurance products in the United States. The one-month return of Brighthouse Financial, Inc. (NASDAQ:BHF) was -7.56%, and its shares lost 6.45% of their value over the last 52 weeks. On August 23, 2024, Brighthouse Financial, Inc. (NASDAQ:BHF) stock closed at $45.37 per share with a market capitalization of $2.756 billion.

Greenlight Capital stated the following regarding Brighthouse Financial, Inc. (NASDAQ:BHF) in its Q2 2024 investor letter:

“However, it wasn’t all roses. We had three material losers in the long portfolio (and an undisclosed loser in the short portfolio), and deservedly so. Brighthouse Financial, Inc. (NASDAQ:BHF) fell from $51.54 to $43.34. In successive quarters, BHF announced large, non-recurring and unexpected losses. This time, the company suffered a loss in a reinsurance arbitration that cost several hundred million dollars.”

A closeup of a hand signing a life insurance policy, illustrating the security it provides.

Brighthouse Financial, Inc. (NASDAQ:BHF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Brighthouse Financial, Inc. (NASDAQ:BHF) at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the potential of Brighthouse Financial, Inc. (NASDAQ:BHF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.