Billionaire Lee Cooperman’s Favorite Stocks Heading Into 2021

2. Mr. Cooper Group Inc. (NASDAQ:COOP)

The billionaire investor has raised its stake by 12% in Mr. Cooper Group Inc. (NASDAQ: COOP) in the third quarter. It is the second-largest stock holding of Omega Advisors family office portfolio, accounting for 10.21% of the overall portfolio.

Shares of Mr. Cooper Group soared 145% in the last twelve months. Mr. Cooper was in 24 hedge funds’ portfolios at the end of June compared to an all-time high of 34. Diamond Hill Capital has been showing concerns over the mortgage industry. Here’s what Diamond Hill Capital stated in a shareholders letter:

“Mortgage servicing company Mr. Cooper Group, Inc. underperformed amid fears over advance payments mortgage servicers are required to make to bondholders in the event of missed payments from borrowers. Investors worry that Federal programs encouraging borrowers impacted by the virus to delay mortgage payments will overwhelm the servicing industry’s ability to make payments to bondholders.”

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