Alphyn Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -21.7% for the quarter, underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Alphyn Capital’s 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, Alphyn Capital highlighted a few stocks and Colfax Corp (NYSE:CFX) is one of them. Colfax is an industrial manufacturing and engineering company. Year-to-date, CFX stock lost 33.2% and on May 12th it had a closing price of $25.20. Its market cap is of $2.88 billion. Here is what Alphyn Capital said:
“Colfax is a roll-up in the welding and medical device space (e.g. artificial shoulders and knees) industries with attractive characteristics and secular tailwinds under more normal conditions. It was founded by the Rales brothers who found incredible success compounding the value of Danaher over several decades, growing by acquisition and employing the Danaher Business System – a comprehensive set of business practices to fully integrate acquired businesses and improve margins. Colefax uses essentially the same playbook and tools.”
In Q4 2019, the number of bullish hedge fund positions on CFX stock increased by about 39% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with CFX’s upside potential.
Disclosure: None. This article is originally published at Insider Monkey.