5 Problematic Stocks Francis Chou Dared To Buy

Sears Holdings Corporation (SHLD), Bausch Health Companies Inc. (BHC), Resolute Forest Products (RFP), and Endo International Plc (ENDP) are all crowded by value investors who are hoping for a swift turnaround (for example Prem Watsa owns around one third of Resolute Forest Product’s outstanding shares). They all had between 16 and 23 hedge funds with bullish positions whereas popular stocks with similar market caps usually attract 35 to 45 hedge funds. On the other hand Sanofi Aventis (SNY) seems like an odd choice as hedge funds collectively own less than 1% of this stock’s outstanding shares. So, this stock is under the radar of almost all types of investors. Sanofi Aventis (SNY) was recently in the news because of the charges that its subsidiaries in the Middle East and in Kazakhstan have made a corrupt payment to win over business.  The company neither denying neither admitting the accusations, granted to pay $25 million to resolve the charges.

Overall, we don’t think Chou’s current stock picks will generate market beating returns in the near future.