Why Assertio Holdings (ASRT) Stock is a Compelling Investment Case

Summers Value Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of -1.2% in the first nine months of 2020, outperforming its benchmark, the Russell 2000 Index which returned -9.6% in the same period. You should check out Summers Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners this year.

In the said letter, Summers Value Partners highlighted a few stocks and Assertio Holdings Inc. (NASDAQ:ASRT) is one of them. Assertio Holdings Inc. (NASDAQ:ASRT) is a pharmaceutical company. Year-to-date, Assertio Holdings Inc. (NASDAQ:ASRT) stock lost 42% and on October 16th it had a closing price of $0.72. Here is what Summers Value Partners said:

“We bought shares of Assertio in the second quarter on the view that the company was poised for improved operating performance after a period of significant corporate change. The stock was inexpensive trading at less than 1x enterprise value to current year sales. We have rarely seen pharmaceutical companies not at risk of bankruptcy trading so cheaply.

In late September, the company was approached by a private company, Currax Pharmaceuticals, which communicated an interest in merging the two companies. Highbridge Capital Management is the owner of Currax Pharmaceuticals and also owns a stake in Assertio. The talks were disclosed in a 13-D filing made by Highbridge in early October. We believe that Assertio shares could be worth $1.25 or better in an acquisition scenario. We have shared our views on the matter with Assertio management and we await further information.”

In Q2 2020, the number of bullish hedge fund positions on Assertio Holdings Inc. (NASDAQ:ASRT) stock increased by about 38% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Assertio’s growth potential. Our calculations showed that Assertio Holdings Inc. (NASDAQ:ASRT) 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 scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. 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.