Today we have brought up with a very informative article about billionaire Paul Singer’s top 5 stock picks, based on Insider Monkey’s latest article. Billionaire Paul Singer’s launched Elliott Investment Management in New York in 1977. The hedge fund underperformed in 2020, but still was able to make a 12.7% return on its investments. It managed to remain lucrative despite the pandemic situation in the world.
Singer foretold quarantine and coronavirus related disruptions. According to an internal memo on February 1 2020, he told his employees “make arrangements so that you do not have to leave your home for a month if that becomes necessary.” And it soon happened. He is famous for his activist strategy, and he took nearly 16 new activist positions in 2020. He purchased stakes in small companies and found cash-rich private equity funds seeking acquisitions. For example, Elliott took a stake in software company Novell in 2010 and later on he offered to buy the entire equity stake for $1 billion. Nevertheless the company has started to invest in bigger tech firms.
And now, without a further ado let’s see two of billionaire Paul Singer’s top 5 stocks. Marathon Petroleum Corporation stands on the fifth spot. Since March 2019, Elliot has had a position in Marathon Petroleum Corporation (NYSE: MPC). Because of the COVID-19 pandemic shares of gas and oil refining and marketing company underperformed, and its shares decreased 11% for the past 11 months. Marathon Petroleum struggled due to the decline of energy sector and global refining markets.
Tesla stands on the third spot of the compilation. Tesla is among the fastest-growing electric vehicle company in the world. Elliott had a large convertible debt position in Tesla during the third quarter of 2020, accounted for 6.31% of the entire portfolio. The convertible debt position can be exchanged for common stock in the issuing company. For more detailed information about billionaire Paul Singer’s top 5 stock picks, please click and jump to see the original entire article.