Hedge Funds Say You Should Bet on Only One of These 3 Falling Stocks

AgroFresh Solutions Inc (NASDAQ:BLVDU) started trading earlier today after the blank check company Boulevard Acquisition Corp completed the purchase of AgroFresh Solutions, a former subsidiary of Dow Chemical Co (NYSE:DOW). The stock’s first day of trading was marked by a 14% slump, but the hedge funds were excited about the blank check company’s prospects at the end of June, which might suggest that it might rebound. As of the end of June, 22 funds from our database reported stakes with an aggregate value of $107.15 million, representing nearly 28% of the company. It was a significant improvement from 12 investors owning $103.75 million worth of stock at the end of March. Among these investors, Marc Lasry‘s Avenue Capital has disclosed ownership of 9.71 million shares (Mr. Lasry was one of the earliest supporters of Boulevard Acquisition and agreed to serve as Chairman on the board of AgroFresh Solutions Inc (NASDAQ:BLVDU)).

HORSEHEAD HOLDING CORP. (NASDAQ:ZINC), which slid by over 16% today and extended its year-to-date decline to 73%. Today’s fall was not marked by any significant developments and comes in contradiction with the latest updates from analysts at FBR & Co., which last week initiated coverage on the stock with ‘Outperform’ rating and a price target of $12.00 per share. Earlier this month, Oppenheimer reiterated its ‘Outperform’ outlook with a price target of $17.00, which represents a huge premium on the current price. A bullish outlook on HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) is also suggested by hedge funds, as 15 of them (among those we track) held $172 million worth of stock at the end of June, almost unchanged over the quarter and equal to 26% of the company. Moreover, Mohnish Pabrai’s Dalal Street seems to be the most fond of the company as it has increased its holding to 7.48 million shares a couple of months ago, from 6.33 million shares held at the end of June.

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