Adams Resources & Energy (AE) Has Fallen 28% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Palm Valley Capital Management’s top stock picks. Palm Valley Capital, an investment management firm, is bullish on Adams Resources & Energy Inc. (NYSEAMERICAN:AE) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Adams Resources & Energy Inc. (NYSEAMERICAN:AE) stock. Adams Resources & Energy Inc. (NYSEAMERICAN:AE) is engaged in the production and marketing of crude oil, natural gas and liquid chemical products.

On July 1, 2019, Palm Valley Capital had released its Q2 2019 investor letter. The investment firm said that Adams Resources & Energy Inc. (NYSEAMERICAN:AE) was one of the ten equities that the fund held in Q2 2019. The stock has posted a return of -28.4% in the trailing one year period, underperforming fund’s benchmark the S&P Small Cap 600 Index which returned -2.2% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Adams Resources & Energy Inc. (NYSEAMERICAN:AE) stock has fallen by 42.8%.

Palm Valley Capital fund posted a return of 0.7% from April 30, 2019 through June 30, 2019, outperforming fund’s benchmark the S&P Small Cap 600 Index which returned -1.9% in the same period. Let’s take a look at comments made by Palm Valley Capital about Adams Resources & Energy Inc. (NYSEAMERICAN:AE) in the Q2 2019 investor letter.

“Adams Resources & Energy is a crude oil marketing, transportation, and storage business. The company also transports liquid chemicals and dry bulk in the U.S. and Canada. Operating results are influenced by fluctuations in oil prices and the volume of oil purchased and sold. Adams has an impeccable balance sheet with no debt and cash equal to 90% of its market capitalization. We believe the company sells at a discount to the value of its infrastructure, real estate, and net working capital.”


In Q1 2020, the number of bullish hedge fund positions on Adams Resources & Energy Inc. (NYSEAMERICAN:AE) stock decreased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with AE’s growth potential. Our calculations showed that Adams Resources & Energy Inc. (NYSEAMERICAN:AE) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost precious metals prices. So, we are checking out this junior gold mining stock.. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.