Should You Be Tempted To ‘Sell’ Spectrum Brands (SPB) Stock

Mittleman Brothers recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Mittleman Global Value Equity Fund – Class P declined 33.4% in AUD (net of fees) in the first quarter of 2020, underperforming the MSCI ACW Total Return Index by 23.7%. 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 Spectrum Brands Holdings Inc. (NYSE:SPB) is one of them. Spectrum Brands is a hardware manufacturing company. Year-to-date, Spectrum Brands Holdings Inc. (NYSE:SPB) stock lost 30.2% and on June 24th it had a closing price of $45.81. Here is what Mittleman Brothers said:

“MIM exited its position in SPB in February at around $60, down only 6.2% including a dividend. The sale was to fund other purchases and it proved a somewhat timely exit with SPB closing at $36.37 on 31 March 2020.

Spectrum was a mixed bag over the past couple of years, with a manufacturing mishap and some other unforced errors muting performance, but since MIM started buying its predecessor entity in 2009 around $20, and its successor Harbinger Group (HRG, which is now the SPB holdco) since December 2010, MIM has made satisfying returns. The stock is attractively priced now down in the $30s and MIM is considering re-entering the position.”

In Q1 2020, the number of bullish hedge fund positions on Spectrum Brands Holdings Inc. (NYSE:SPB) stock decreased by about 47% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with SPB’s downside potential. Our calculations showed that Spectrum Brands Holdings Inc. (NYSE:SPB) 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. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. 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.