Mittleman Brothers recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Mittleman Global Value Equity Fund – Class P advanced 13.0% net of fees (AUD) in the second quarter of 2020, versus a gain of 6.0% in the MSCI ACW Index. You should check out Mittleman Brothers’ 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, Mittleman Brothers’ highlighted a few stocks and Carnival Corp (NYSE:CCL) is one of them. Carnival Corp (NYSE:CCL) is a cruise company. Year-to-date, Carnival Corp (NYSE:CCL) stock lost 71.4% and on August 20th it had a closing price of $14.54. Here is what Mittleman Brothers’ said:
“The third best performer in Q2 was Carnival Corp. (CCL). The position was established at around $8.33 per share with roughly half sold at prices between $14 and $25. The current downturn in the cruise business is unprecedented, but CCL is well equipped to survive it, with access to capital through asset sales or mortgages. Add to this a very loyal and growing hoard of customers that really, really loves the cruise experience, despite the increasingly obvious drawbacks. Actual FCF is much greater than it appears as regular spend on new ships are not just replacements but are generally growth initiatives. Running with limited capital spend the FCF would be immense, around $2B per year on $5B in EBITDA (normalised). MIM puts fair value for CCL close to $40 at 9.4x EBITDA and 14x FCF.”
Last month, we published an article revealing that Silver Ring Value Partners LP is bullish about Carnival Corp (NYSE:CCL) stock. The investment firm believes that the company would emerge stronger from the coronavirus crisis.
In Q1 2020, the number of bullish hedge fund positions on Carnival Corp (NYSE:CCL) stock decreased by about 9% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Carnival’s upside potential. Our calculations showed that Carnival Corp (NYSE:CCL) 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
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