GDS Investments Shares Bullish Theses on FMC, GM, Mosaic, More

Page 1 of 2

GDS Investments, a premier investment management firm headed by Glenn D. Surowiec, recently released a letter in which the firm talked about various stocks such as FMC Corp (NYSE:FMC), General Motors Company (NYSE:GM), Mosaic Co (NYSE:MOS), BP plc (ADR) (NYSE:BP), and Abbott Laboratories (NYSE:ABT).

Given that GDS’ client portfolios have averaged 14.41% annualized returns since inception (in 2008), we took a closer look at the letter and cover the relevant excerpts concerning the five companies below:

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Offshore Oil Drilling BP RIG ESV 2

As it pertains to FMC Corp (NYSE:FMC), GDS Investments likes the stock and believes the company ‘enjoys additional leverage to cyclical improvement in crop nutrients suppliers, a decrease in the company’s reliance on the corn and soybean markets, and opportunities within the more attractive “niche” coffee, cotton, and rice markets’. In addition, the fund likes how FMC Corp has a sizable and growing business selling to the pharmaceutical and food industries. Needless to say, the firm feels that FMC Corp (NYSE:FMC) is materially undervalued. Of the 742 elite funds that Insider Monkey tracks, many also feel the same way. According to our data, 31 elite funds had a bullish position in FMC Corp (NYSE:FMC) at the end of December, up 3 funds from the previous quarter.

Follow Fmc Corp (NYSE:FMC)

In relation to General Motors Company (NYSE:GM), GDS Investments notes that the icon has a solid financial profile — with $20 billion in cash, $10 billion in free cash flow per year, and a large multi-billion dollar buy back program. In addition, GM has $50 billion in NOL’s and a well-covered dividend. Given that strong profile, GM is a ‘stalwart’ in client-advised portfolios. GDS isn’t the only firm that likes General Motors Company (NYSE:GM). According to 13F filings, Warren Buffett’s Berkshire Hathaway owned 50 million shares at the end of December.

Follow General Motors Co (NYSE:GM)

On the next page, we examine GDS Investments’ comments on Mosaic Co, BP plc (ADR), and Abbott Laboratories.

Page 1 of 2