Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) made its way into Highbridge’s top five new picks by taking up $50mm of the fund’s AUM. With a market cap of $111bn, PBR was far and away the largest company on our list to be added; it also gave the worst performance, losing 37% in the past twelve months. Wall Street has modeled much higher valuations for the stock than what it is currently trading at; on March 7th, Credit Suisse upgraded PBR to outperform and planted a $25 price target on its report, which could mean a near-50% gain from today’s levels. A recent increase in diesel prices is the fire fueling that growth. Ken Fisher of Fisher Asset Management reduced his position from Q3 2012 to Q4 but still carries a staggering 12.7mm shares (research his portfolio here).
Disclosure: I do not own shares of any stocks mentioned in this article.