Horos Asset Management recently released its Q1 2020 Investor Letter, a copy of which you can download here. Horos Value Iberia fell by -35.1% compared to -27.6% of its benchmark index. On the other hand, Horos Value Internacional was down by -30.2% compared to -19.6% of its benchmark index. You should check out Horos Asset 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, Horos Asset Management highlighted a few stocks and Borr Drilling Limited (NYSE:BORR) is one of them. Borr Drilling engages in the provision of drilling services to the oil and gas exploration and production industry. Year-to-date, Borr Drilling Limited (NYSE:BORR) stock lost 86.7% and on June 24th it had a closing price of $1.18. Here is what Horos Asset Management said:
“In addition, despite their significant declines, we decided not to add on our investments in Shelf Drilling or Borr Drilling—the two offshore drilling companies that remain in our portfolio— in view of the foreseeable impact that low oil prices will have on oil companies’ capital expenditures. While it is true that these low prices and the current tightness in capital markets may be the tipping point for a slowdown or a decline in US shale oil production and, ultimately, an oil supply that falls short of demand —leading to higher oil prices and increased E&P capex— we believe that it does not make sense to take certain risks at a time when investment opportunities abound.”
In Q1 2020, the number of bullish hedge fund positions on Borr Drilling Limited (NYSE:BORR) stock decreased by about 25% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Borr Drilling’s downside potential. Our calculations showed that Borr Drilling Limited (NYSE:BORR) 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.
