In this article, we will discuss the 5 stock picks of Jon Bauer’s Contrarian Capital. If you want to read our detailed analysis of Bauer’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Jon Bauer’s Contrarian Capital.
5. Ternium S.A. (NYSE:TX)
Contrarian Capital Stake Value: $40,424,000
Percentage of Contrarian Capital’s 13F Portfolio: 5.98%
Number of Hedge Fund Holders: 15
Ternium S.A. stands fifth on the list of top 10 stock picks of Jon Bauer’s Contrarian Capital. According to Morgan Stanley analyst Carlos De Alba, steel prices in the Americas are anticipated to fall from current record levels. On October 18, he downgraded Ternium to “Equal Weight” from “Overweight” and lowered his price objective to $50, down from $60.
In the second quarter, Contrarian Capital raised its position in Ternium S.A. by 19% to 1.05 million shares, accounting for just over 5.98% of the overall portfolio. Out of the hedge funds being tracked by Insider Monkey, Oldfield Partners is a leading shareholder in Ternium S.A. with 1.22 million shares worth more than $46.96 million.
4. Vedanta Limited (NYSE:VEDL)
Contrarian Capital Stake Value: $43,408,000
Percentage of Contrarian Capital’s 13F Portfolio: 6.42%
Number of Hedge Fund Holders: 10
Shares of natural resource company Vedanta Limited (NYSE:VEDL) rallied 206.64% in the last 12 months. The company’s consolidated quarterly revenue was $300.48 billion, up 44% year over year.
The company is placed fourth on the list of top 10 stock picks of Jon Bauer’s Contrarian Capital. Contrarian Capital owns approximately 3.06 million shares in Vedanta Limited, valued at over $43.41 million, accounting for 6.42% of its total holdings. In the second quarter of 2021, the hedge fund raised its holdings by 3%, making it the leading shareholder of Vedanta Limited. At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $63.95 million in the company.
3. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Contrarian Capital Stake Value: $91,971,000
Percentage of Contrarian Capital’s 13F Portfolio: 13.61%
Number of Hedge Fund Holders: 25
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), a worldwide integrated oil and gas company, reported crude oil output of 2.269 million barrels per day, up 1.9% from the second quarter of 2021 and down 4% from the third quarter of 2020. The company stands third on the list of top 10 stock picks of Jon Bauer’s Contrarian Capital.
Petróleo Brasileiro S.A. announced a 7.2% increase in wholesale gasoline and cooking gas prices in October, as high energy costs worsened Brazil’s most tremendous inflation since 1994. In the second quarter, Jon Bauer increased his stake in Petróleo Brasileiro S.A. by 29%, and his 13.61% stake in the company is now worth about $91.97 million.
Petróleo Brasileiro S.A. saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 25 at the end of the second quarter compared to 27 positions in the previous quarter. GQG Partners, with 138.95 million shares, is the most significant stakeholder in the company.
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.
1. Vale S.A. (NYSE:VALE)
Contrarian Capital Stake Value: $198,900,000
Percentage of Contrarian Capital’s 13F Portfolio: 29.43%
Number of Hedge Fund Holders: 27
Vale S.A. (NYSE:VALE) is engaged in the manufacturing and exporting of iron ore, pellets, manganese, and iron alloys. On October 21, RBC Capital analyst Tyler Broda downgraded Vale to “Underperform” from “Outperform” also lowered his price target to $12.50 from $17.
You can also take a peek at Dividend Stock Portfolio: 10 Stock Picks By Hedge Funds and Billionaire DE Shaw’s Top 10 Stock Picks.
