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KB Financial Group (KB) Has Fallen 7% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Mittleman Brothers top stock picks. Mittleman Brothers, an investment management firm, is bearish on KB Financial Group Inc (NYSE:KB) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on KB Financial Group Inc (NYSE:KB) stock. KB Financial Group Inc (NYSE:KB) is a commercial bank.

In August 2019, Mittleman Brothers had released its Q2 2019 investor letter. KB Financial Group Inc (NYSE:KB) stock has posted a return of -7.4% in the trailing one year period, underperforming the S&P 500 Index which returned 16.1% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, KB Financial Group Inc (NYSE:KB) stock has fallen by 21.5%.

In Q2 2019 investor letter, Mittleman Brothers said the Mittleman Global Value Equity Fund – Class P posted a return of -4.6% in the second quarter of 2019, underperforming the S&P 500 Index which returned 4.30% in the same period. Let’s take a look at comments made by Mittleman Brothers about KB Financial Group Inc (NYSE:KB) stock in the Q2 2019 investor letter.

“In order to make room in the portfolio for AEL, MIM sold its remaining stake in the large Korean bank, KB Financial Group (KB). While MIM’s final sale of KB at $38.50 looks uninspiring (small gain or loss depending on entry date), it had sold about half of the position near $60 in late December 2017 into January 2018 (as it neared MIM’s estimate of fair value). Whilst MIM still thinks significant upside in KB remains, there is a more attractive risk/ reward in AEL.”

Ghost Tree Capital's AUM, Returns and Holdings

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In Q1 2020, the number of bullish hedge fund positions on KB Financial Group Inc (NYSE:KB) stock increased by about 40% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with KB’s downside potential. Our calculations showed that KB Financial Group Inc (NYSE:KB) 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

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.