Miller Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 47.02% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.54% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Miller Value Partners highlighted a few stocks and Genworth Financial Inc (NYSE:GNW) is one of them. Genworth Financial Inc (NYSE:GNW) is an insurance company. Year-to-date, Genworth Financial Inc (NYSE:GNW) stock lost 41.6% and on August 13th it had a closing price of $2.55. Miller Value cared to mention Genworth Financial Inc (NYSE:GNW) in its investor letter, though they didn’t say why they really like the stock. All they said is this:
“Genworth Financial Inc. (GNW) declined -30.5% during the quarter as investors grew concerned on the potential closing of the acquisition by China Oceanwide. The company noted on their 1Q call that China Oceanwide’s financing plans were “progressing well,” but also noted that China Oceanwide was having discussions with third parties beyond their primary lender creating concern that the primary lender might not follow through on its commitment. Management noted that they expect the deal to close by June 30th, but noted that the buyer had allowed Genworth to explore alternatives it could pursue if the deal fell through. The company reported 1Q revenue of $1.84B below consensus of $1.99B with EPS of $0.07 below consensus of $0.27. After the quarter ended, the company announced another extension of the acquisition agreement with China Oceanwide. The new agreement extends the merger deadline to September 30th with an interim update on financing by August 31th. The company held a call to discuss the extension as well as “Plan B” options available to it if the deal fails.”
In Q1 2020, the number of bullish hedge fund positions on Genworth Financial Inc (NYSE:GNW) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Genworth Financial Inc (NYSE:GNW) 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. Cannabis stocks are roaring back in 2020, so we are checking out this under-the-radar 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.
