Top 5 Stock Picks of Jon Bauer’s Contrarian Capital

2. Gerdau S.A. (NYSE:GGB)

Contrarian Capital Stake Value: $121,822,000
Percentage of Contrarian Capital’s 13F Portfolio: 18.02%
Number of Hedge Fund Holders: 17

Gerdau S.A. (NYSE:GGB), a steel products and services company, ranks second on the list of top 10 stock picks of Jon Bauer’s Contrarian Capital. The hedge fund holds nearly 20.65 million shares of Gerdau worth roughly $121.82 million.

In Q3, Gerdau S.A. posted revenue of $3.84 billion, beating the consensus by $276.51 million. However, on October 18, Morgan Stanley analyst Carlos De Alba downgraded Gerdau from “Overweight” to “Equal Weight,” with a price target of R$32, down from R$40, since he expects steel prices in the Americas to decrease from current highs.

Fund managers added to their Gerdau S.A. holdings in the second quarter. There were 17 hedge funds in our database that held stakes in the company at the end of the second quarter, compared to 11 funds in the previous.