In this article, we will take a look at the 10 stocks to buy under $15 according to Canadian Billionaire Prem Watsa. You can skip our detailed analysis of Prem Watsa’s history, investment philosophy, and hedge fund performance, and go directly to the 5 Stocks to Buy Under $15 According to Canadian Billionaire Prem Watsa.
Prem Watsa, an Indian-born Canadian hedge fund investor, is known as the “Warren Buffett of Canada.” He earned his MBA degree from Richard Ivey School of Business. He started his career as a salesperson to support his education. He founded Fairfax Financial Holdings in 1985 after buying and renaming Markel Financials. In 2020, he was awarded the fourth highest civilian award of India, Padma Shri.
Fairfax Financial Holdings has stakes in 58 holdings in its 13F portfolio as of the second quarter. Atlas Corp. (NYSE:ATCO) represents 45.79% of the 13F portfolio. It is followed by BlackBerry Limited (NYSE:BB) representing 18.37%. Apart from these, Fairfax Financial Holdings has stakes in some major companies like Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), and Johnson & Johnson (NYSE:JNJ).
Prem Watsa
Our Methodology
This list has been compiled after analyzing the cheapest stocks in the portfolio of Fairfax Financial Holdings for the second quarter of 2021. The price of each stock has been mentioned as of October 15, 2021. We have also mentioned the total number of hedge funds having stakes in each company as tracked by Insider Monkey in the second quarter of 2021.
Why should we pay attention to hedge funds’ stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Stocks to Buy Under $15 According to Canadian Billionaire Prem Watsa
10. Resolute Forest Products Inc (NYSE:RFP)
Stock Price: $13.5
Number of Hedge Fund Holders: 15
Resolute Forest Products Inc (NYSE:RFP) is based in Quebec, Canada, and is engaged in the production of forest products like pulp, wood products, paper, and tissue. The company has operations in 50 countries.
At the end of the second quarter of 2021, Fairfax Financial Holdings held 30.55 million shares in Resolute Forest Products Inc (NYSE:RFP), worth $372.68 million, accounting for 11.99% of the 13F portfolio.
Fairfax Financial Holdings is the leading hedge fund investor in Resolute Forest Products Inc (NYSE:RFP). Apart from this, Fairfax Financial Holdings has stakes in some of the major companies like Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), and Johnson & Johnson (NYSE:JNJ).
With a stock price of $13.5, Resolute Forest Products Inc (NYSE:RFP) ranks tenth on our list of 10 stocks to buy under $15 according to Canadian billionaire Prem Watsa.
9. Osisko Gold Royalties Ltd (NYSE:OR)
Stock Price: $12.3
Number of Hedge Fund Holders: 19
Osisko Gold Royalties Ltd (NYSE:OR) is a Quebec-based company with operations in the gold and silver mining industry. The company holds a portfolio of over 140 royalties, streams, and precious metal offtakes.
At the end of the second quarter of 2021, Fairfax Financial Holdings held over 160,000 shares worth $2.188 million. Osisko Gold Royalties Ltd (NYSE:OR) accounted for 0.07% of the 13F portfolio.
With 5.12 million shares valued at $70 million, Sprott Asset Management is the leading hedge fund investor in Osisko Gold Royalties Ltd (NYSE:OR).
On October 13, 2021, Raymond James initiated its coverage of Osisko Gold Royalties Ltd (NYSE:OR) with an “Outperform” rating and a price target of $17.38.
8. Lumen Technologies, Inc. (NYSE:LUMN)
Stock Price: $12
Number of Hedge Fund Holders: 33
Lumen Technologies, Inc. (NYSE:LUMN) is based in Louisiana and provides communication services in the US and internationally. The company provides broadband services under the name of CenturyLink to residential and business customers. The company offers services like IP, VPN, and Ethernet.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 33 were bullish on Lumen Technologies, Inc. (NYSE:LUMN), having stakes worth $1.05 billion.
At the end of the second quarter of 2021, Fairfax Financial Holdings holds 1.425 million shares in Lumen Technologies, Inc. (NYSE:LUMN), worth $19.37 million, accounting for 0.62% of the 13F portfolio.
Like Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), and Johnson & Johnson (NYSE:JNJ), Lumen Technologies, Inc. (NYSE:LUMN) is a noteworthy pick of Fairfax Financial.
7. BlackBerry Limited (NYSE:BB)
Stock Price: $10.34
Number of Hedge Fund Holders: 20
BlackBerry Limited (NYSE:BB) is based in Canada and provides specialized security software, and services. The company is also leveraging AI and machine learning for delivering solutions for cybersecurity, data privacy, and embedded systems.
As of the second quarter of 2021, Fairfax Financial Holdings has 46.7 million shares in BlackBerry Limited (NYSE:BB), valued at $570.9 million. The company accounts for 18.37% of the hedge fund’s portfolio. Like BlackBerry Limited (NYSE:BB), Fairfax Financial Holdings has significant stakes in companies like Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), and Johnson & Johnson (NYSE:JNJ).
Currently trading at $10.35, BlackBerry Limited (NYSE:BB) ranks seventh on our list of 10 stocks to buy under $15 according to Canadian billionaire Prem Watsa.
6. U.S. Silica Holdings Inc (NYSE:SLCA)
Stock Price: $10.04
Number of Hedge Fund Holders: 17
U.S. Silica Holdings Inc (NYSE:SLCA), headquartered in Texas, operates in materials industry and provides silica for oil and gas industry. The company has a developed network of mining, processing and logistics of silica. The company operates 23 mines in the US.
As of the second quarter of 2021, Fairfax Financial Holdings holds 130,000 shares of the company worth $1.502 million. U.S. Silica Holdings Inc (NYSE:SLCA) represents 0.04% of Fairfax Financial portfolio of 13F securities.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 17 were bullish on U.S. Silica Holdings Inc (NYSE:SLCA), having stakes worth $112.4 million. This number has increased from 18 in the Q1 of 2021, worth $191.24 million.
In Q2 2021, Renaissance Technologies held over 4.45 million shares worth $51.5 million of U.S. Silica Holdings Inc (NYSE:SLCA) and ranked as the leading investor in the company.
Like Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), and Johnson & Johnson (NYSE:JNJ), U.S. Silica Holdings Inc (NYSE:SLCA) is a notable pick of Prem Watsa’s Fairfax Financial Holdings.
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Disclosure. None. 10 Stocks to Buy Under $15 According to Canadian Billionaire Prem Watsa is originally published on Insider Monkey.
