5 Best Stocks To Buy According To Market Beating Hedge Fund

CIT Group Inc. (NYSE:CIT)

Owl Creek increased its holding in CIT Group Inc. (NYSE:CIT) by 32% in the third quarter, entering the final quarter of 2016 with a total of 2.36 million shares of the company worth $85.66 million. The stock is up by over 10% year-to-date. Last month, BMO Capital downgraded the New Jersey-based commercial banking company to ‘Underperform’ from ‘Market Perform’, with a price target of $33. On December 2, CIT announced that Steven T. Mnuchin resigned from the company’s Board of Directors after President-elect Donald Trump revealed his intention to nominate Mnuchin as the next Secretary of the Treasury. Robert Rodriguez and Steven Romick’s First Pacific Advisors owns 14.42 million shares of CIT Group Inc. (NYSE:CIT) as of the end of the third quarter.

Herbalife Ltd. (NYSE:HLF)

Owl Creek Asset Management lowered its stake in Herbalife Ltd. (NYSE:HLF) by 23% in the third quarter, ending the period with a total of 1.32 million shares of the company valued at $81.64 million. Investors are closely watching Herbalife after President-elect Donald Trump named billionaire and activist investor Carl Icahn as special advisor to the President on regulatory reform. The 80-year-old investor has a 23% stake in the nutritional supplements company, which recently reached a $200 million settlement with the FTC over accusations of fraudulent practices. The stock is down by over 8% year-to-date. Of the 742 funds tracked by Insider Monkey which filed 13Fs for the September quarter, 44 were bullish on Herbalife Ltd. (NYSE:HLF) on September 30.

Vereit Inc (NYSE:VER)

There were 5.92 million Vereit Inc (NYSE:VER) shares in Owl Creek’s portfolio at the end of the third quarter, after the fund added 120,200 shares of the real estate operating company to its position during the quarter. That pushed the value of the fund’s stake in the company to $61.45 million. Earlier this month, JPMorgan upgraded Vereit to ‘Overweight’ from ‘Neutral’, and has a price target of $11 on it. The company expects full-year 2016 FFO (Funds from Operations) of $0.75 to $0.78, beneath its previous guidance of $0.75 to $0.80. Matthew Barrett’s Glendon Capital Management owns 6.82 million shares of Vereit Inc (NYSE:VER) as of the end of September.

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