Five Top Stock Ideas For Q4 From Tipp Hill Capital

#2 Barrick Gold Corporation (USA) (NYSE:ABX)

Shares held (as of September 30): 1.25 million
Total Value (as of September 30): $7.95 million
Percent of Portfolio (as of September 30): 8.14%

Barrick Gold Corporation (USA) (NYSE:ABX) was a new position for Tipp Hill in the third quarter. The hedge fund bought 1.25 million shares between July 1 and September 30, good for 8.14% of the fund’s portfolio. Other hedge funds have been bullish on the gold producer as well. 42 funds in our database reported stakes worth $1.64 billion in Barrick Gold at the end of June. Among the bullish funds was quant legend Jim Simons of Renaissance Technologies, which owned 14.03 million shares at the end of the second quarter. Although China isn’t buying as much gold as previously expected, the worst case scenario for the precious metal hasn’t materialized. Gold isn’t anywhere close to $800 per troy ounce, as various geopolitical flareups stoke demand. The U.S recently sent a guided missile cruiser within 12 miles of an island in the South China Sea (to exercise freedom of navigation under international law), drawing China’s ire. It is also considering sending special forces into Syria, a nation Russia is currently bombing to support Assad’s regime. Any flareups between the three powers will send gold, and by extension Barrick Gold’s shares, soaring.

#1 Visteon Corp (NYSE:VC)

Shares Underlying Call Options (as of September 30): 125,000
Total Value (as of September 30): $12.66 million
Percent of Portfolio (as of September 30): 12.96%

Tipp Hill’s number one holding is a position of call options on automotive supplier Visteon Corp (NYSE:VC), good for 12.96% of the fund’s portfolio. Tipp Hill also owns 58,000 equity shares. Visteon Corp sold its 70% stake in Halla Visteon Climate Control to a South Korean private equity firm for $3.6 billion earlier this year. Because of the sale, management plans to return $2.5 billion in capital back to its shareholders and buy back a lot of stock. The stock buyback could be a potential catalyst that sends Visteon Corp’s valuation higher (Visteon Corp’s valuation is significantly below its competitor’s valuation from an EV/EBITDA perspective). 57 funds reported long stakes in Visteon worth $1.64 billion as of the end of June. Christopher Pucillo‘s Solus Alternative Asset Management owned 2.58 million shares at the end of June.

Disclosure: None