Paul Singer’s Latest Portfolio: Top 5 Stock Picks

3. Peabody Energy Corporation (NYSE:BTU)

Elliott Management’s Stake Value: $551,593,000

Percentage of Elliott Management’s 13F Portfolio: 6.35%        

Number of Hedge Fund Holders: 29

Peabody Energy Corporation (NYSE:BTU) started trading again on the New York Stock Exchange in 2017 after emerging from a year-long $8 billion chapter 11 bankruptcy. Elliott Management was one of the biggest beneficiaries of this relisting as it had the right to buy additional Peabody Energy Corporation’s (NYSE:BTU) shares at a 35% to 45% discount when the company started trading again on the exchanges.

Elliott Management has been Peabody Energy Corporation’s (NYSE:BTU) largest shareholder since the company got relisted. In February 2020, Peabody Energy Corporation’s (NYSE:BTU) management agreed to include Elliott Management’s nominees Dave Miller, Samantha Algaze, and Darren Yeates to its board.

With coal demand surging around the world post the pandemic, Peabody Energy Corporation’s (NYSE:BTU) stock has been one of the biggest beneficiaries of it, rising over 110% in the past year. Most analysts on Wall Street who track the company continue to remain bullish on the stock with a consensus price target of $32.67, representing a potential upside of 27.8% from the stock’s last trading price.