Mark Stupfel’s Cortex Capital Management Is Bullish On These Stocks

Mark Stupfel’s Cortex Capital Management is a financial investment advisory firm headquartered in Fort Worth, Texas, that holds an equity portfolio worth more than $160 million. The equity firm emerged from the ashes of Kleinheinz Capital Partners, where Stupfel worked as a portfolio manager. Moreover, John Kleinheinz, Stupfel’s former boss and Standford University classmate, backed the project with a significant amount of cash.

About one month ago,  Cortex filed its first 13F Form with the U.S. Securities and Exchange Commission. Cortex’s most valuable bet is placed on General Motors Company (NYSE:GM), the $58.5 billion market cap world-known auto manufacturer. The fund owns 398,000 shares -valued at more than $14.7 million.

General Motors Company (NYSE:GM)

Not only Stupfel feels bullish about General Motors. Warren Buffett’s Berkshire Hathaway has more than $1.5 billion invested in the auto-maker. Furthermore, David Einhorn’s Greenlight Capital owns more than 17 million shares – valued at more than $622 million – which account for more than 10% of the total value of its equity portfolio. And their ownership is quite easy to understand. As the auto market recoups in the U.S. and Europe, the company should deliver strong earnings growth figures. In fact, analysts expect the company to deliver an average annual EPS growth rates around 19% over the next five years, widely outperforming its peers. This must be why most analysts recommended buying this stock at the time, even in spite of its above average valuation of 16.8x P/E, versus an industry average of 11.5x.

At the same time, Matthew Tsien, Executive Vice President of General Motors, increased his stake in the company by about 14%, and currently holds 1,600 shares of Common Stock.

Altisource Asset Management Corp (NYSEMKT:AAMC), a $1.9 billion market cap asset management company that provides portfolio management and corporate governance services, came in second (by a very narrow margin). Cortex owns 18,000 shares of the company, valued at approximately $14.5 million. In addition, other top hedge funds also seem to feel bullish about Altisource Asset Management. For instance, Brian Jackelow‘s Sab Capital Management – the company’s largest hedge fund bull – last reported increasing its stakes by 16%, to more than 195,000 shares –which accounted for more than 9% of its Q4 equity portfolio. Another important fund betting on this company is Ben Gambill‘s Tiger Eye Capital, which owns more than 139,000 shares of the company, even in spite of its weak fundamentals.

In addition, Cortex holds 80,000 shares (worth more than $8.8 million) of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS), which further proves the fund’s bullishness about Altisource and its diverse subsidiaries. This last NASDAQ-traded company displays backup of some of the most prominent investors of our time, including Jim Simons and Leon Cooperman.

The last case I would like to highlight is that of Citigroup Inc (NYSE:C). Stupfel’s fund holds 225,400 shares of the company, worth $11.17 million. Furthermore, Mullen is not the only one feeling confident about this stock’s future performance: over Q4, Seth Klarman’s Baupost Group increased its stakes in the company by 11%, to more than 104 million shares, which are valued at more than $5 billion. Other investors with major stakes are Eric Mindich and Philippe Jabre.

Moreover, analysts also seem to like this stock: a cheap valuation (11.6x P/E vs. an industry mean of 13.8x) and above average long-term EPS growth prospects, make it a buy/strong buy case for most analysts. A mean price target of $60.17 per share implies an upside potential of more than 20%.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Billionaire John Paulson and Jacob Gottlieb Boost Their Stakes in Enzymotec Ltd (ENZY)

Elliott Management Wagers on Boyd Gaming Corp. (BYD)

Viking Global Boosts Its Stake in Illumina, Inc. (ILMN)

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!