Why MMA Capital Holdings (MMAC) Stock is a Compelling Investment Case

Alluvial Capital Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. In the letter, among other things, the fund reported a return for its Alluvial Fund LP Net of 14.8% for Q2 2020. You should check out Alluvial Capital’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, Alluvial Capital highlighted a few stocks and MMA Capital Holdings Inc. (NASDAQ:MMAC) is one of them. MMA Capital Holdings Inc. (NASDAQ:MMAC) is a portfolio management company. Year-to-date, MMA Capital Holdings Inc. (NASDAQ:MMAC) stock lost 16.5% and on July 31st it had a closing price of $24.78. Here is what Alluvial Capital said:

“MMA Capital Holdings, another long-time Alluvial holding. MMAC has been among Alluvial’s most successful investments to date, though shareholders have little to show for the last three years. Despite the market’s disinterest, the firm’s book value continues to grow at a healthy pace. Earnings are growing proportionally as the solar construction lending business scales. MMA was formerly a voracious repurchaser of its own shares but reduced its activity in favor of building out its core business and preserving liquidity as credit markets came under stress earlier this year. I am hopeful that with the worst of COVID-related fears behind us and shares still trading at a 25% discount to book value (excluding tax assets) the company will resume buying back shares. I believe MMA should trade somewhere in the upper $30s, much closer to book value.”

In June, we published an article revealing that Arquitos Capital Partners is bullish about MMA Capital Holdings Inc. (NASDAQ:MMAC) stock. The investment firm believes that the company would emerge stronger from the pandemic crisis.

Our calculations showed that MMA Capital Holdings Inc. (NASDAQ:MMAC)  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. Cannabis stocks are roaring back in 2020, so we are checking out this under-the-radar stock. 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. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. 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.