Third Avenue Management recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Third Avenue Value Fund posted a return of -42.08% for the quarter, underperforming its benchmark, the MSCI World Index which returned -20.95% in the same quarter. You should check out Third Avenue 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, Third Avenue Management highlighted a few stocks and Deutsche Bank AG (NYSE:DB) is one of them. Deutsche Bank is an investment bank and financial services company. Year-to-date, Deutsche Bank AG (NYSE:DB) stock gained 24.2% and on June 15th it had a closing price of $9.47. Here is what Third Avenue Management said:
“Deutsche Bank made substantial progress in its restructuring efforts during the last two years, including the formation of a Capital Release Unit (“CRU”). The CRU is essentially a pool of non-core assets and liabilities that are in liquidation but are currently trapping the associated capital while the bank winds down the CRU. CRU capital totals EUR 8.3 billion of shareholders equity and it is expected to be liberated over coming quarters. The plan is to redeploy half of that capital into other parts of the business and distribute the other half to shareholders beginning in 2022. Deutsche Bank also owns 79% of publicly listed asset manager DWS Group, which today has a market value today of EUR 3.6 billion. The entire market cap of Deutsche Bank itself is only EUR 12.3 billion today, which suggests that the entirety of Deutsche Bank’s actual operations, including Germany’s largest retail banking business, global corporate banking and global investment banking, have virtually zero value.”
In Q4 2019, the number of bullish hedge fund positions on Deutsche Bank AG (NYSE:DB) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Deutsche Bank AG (NYSE:DB) 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.
