Billionaire Paul Singer’s Long-Term Picks

#1 Hess Corp. (NYSE:HES)

– Shares Owned by Elliott Management (as of September 30): 17.8 Million

– Value of Holding (as of September 30): $891.07 Million

Finally, Hess Corp. (NYSE:HES) continued to remain Elliott Management’s top stock pick for 11 quarters in a row with the fund not making any changes to its stake in the company during the third quarter of 2015. Although shares of Hess Corp. (NYSE:HES) declined by over 34% during 2015, its dividend yield stands at slightly above 2%.

A lot of analysts that cover the stock are not very optimistic about its future prospects citing the decline in crude oil prices, the weak operating cash flow of the company and its unsatisfactory return on equity. On January 7, analysts at Deutsche Bank reduced their price target on the stock to $60 from $66, which represents a potential upside of just 3% from the stock’s current levels.

Hess Corp. (NYSE:HES) is expected to report its fourth-quarter earnings at the end of this month and analysts estimate that the company is going to declare a per share loss of $1.19 on revenue of $1.56 billion for the quarter versus EPS of $0.18 on revenue of $2.53 billion that it had reported for the same quarter last year. Among the few hedge funds that became bullish on the company during the third quarter was Billionaire Israel Englander‘s Millennium Management, which initiated a stake in Hess Corp.  by acquiring 733,542 shares.

Disclosure: None