Magna International (MGA) Is Recession-Resistant Stock to Buy Now

VLTAVA Fund recently released its Q2 2020 Investor Letter, a copy of which you can download here. VLTAVA is a global equity investment fund launched by Daniel Gladis in 2004. You should check out VLTAVA Fund’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, VLTAVA highlighted a few stocks and Magna International Inc (NYSE:MGA) is one of them. Magna International Inc (NYSE:MGA) is a mobility technology company for automakers. Year-to-date, Magna International Inc (NYSE:MGA) stock lost 3.6% and on August 11th it had a closing price of $52.33. Here is what VLTAVA said:

“Some companies in our portfolio are meanwhile faring better than we expected. Specifically, that is the case for Magna, BMW, Samsung and Humana. Magna is showing itself to be more resistant to recession than we had counted upon. Its operating leverage is lower than in the last recession, its balance sheet is strong, and it very probably will boost its market share during this recession, whether organically or by acquisitions.”


In Q1 2020, the number of bullish hedge fund positions on Magna International Inc (NYSE:MGA) stock decreased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Magna International’s growth potential. Our calculations showed that Magna International Inc (NYSE:MGA) 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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Disclosure: None. This article is originally published at Insider Monkey.