Top 5 Stocks to Invest in According to Alan Fournier’s Pennant Capital

3. General Motors Company (NYSE:GM)

Mr. Fournier’s Stake Value: $30.5 million

Percentage of  Pennant Capital’s 13F Portfolio: 8.66%

Number of Hedge Fund Holders: 86

General Motors Company (NYSE:GM) is an iconic American automotive brand that is also one of the oldest companies in the world. It is more than a century old, after being founded in 1908 and is currently headquartered in Detroit, Michigan.

The company earned $26.7 billion in revenue and $1.52 in non-GAAP earnings share for its third quarter, missing analyst estimates for revenue. General Motors Company (NYSE:GM)’s price target was lowered to $78 by Morgan Stanley in a November 2021 analyst note following the earnings report, outlining that the company has tough times ahead due to higher investor and consumer interest in electric vehicles.

Mr. Fournier’s investment firm held 579,000 General Motors Company (NYSE:GM) shares that were worth $30.5 million and represented 8.6% of its portfolio by the end of the third quarter of this year. A survey of 873 hedge funds conducted by Insider Monkey in the prior quarter revealed that 86 had holdings in the company.

General Motors Company (NYSE:GM)’s largest investor is Warren Buffett’s Berkshire Hathaway, which owns 60 million shares worth $3 billion.

Investment management firm Miller Value Partners in its third quarter 2021 investor letter mentioned General Motors Company (NYSE:GM) and outlined that:

“Another name we’ve recently purchased and have grown incredibly excited about: General Motors (GM). GM is interesting on many levels. We see it as an attractive investment opportunity and it might be a microcosm of current markets, both past and prospective.

Tesla trounced GM over the last decade. Tesla rose 15,797% crushing GM’s 238% increase, which lagged the S&P 500’s 365%. Tesla came out of nowhere creating what many said was the best car ever made. A decade ago, no one saw that coming, including GM. GM’s historical strength led to arrogance. It completely dismissed the threat of any newcomer…” (Click here to see the full text)