Grupo Supervielle (NYSE: SUPV) and Pampa Energia (NYSE: PAM) Among the Most Undervalued Third Point Holdings

in INVESTING IDEAS by

Here is what Wall Street believes are the most attractively priced stocks in Daniel Loeb’s portfolio. Investors may want to take a closer look at the names below.


Third Point’s 7 Bullish Analyst Targets

Banks and brokerages often release 12 to 18 month price targets for the stocks they cover. Analyst upgrades and downgrades alone can often impact a company’s stock price.

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” – Benjamin Graham

The table below ranks stocks in Third Point’s portfolio with most bullish analyst targets:

Third Point 7 Bullish Analyst Targets
Ticker Name Upside (Analyst Target) % Of Portfolio
SUPV GRUPO SUPERVIELLE S A 104.6% 0.3%
PAM PAMPA ENERGIA S A 84.3% 0.5%
GGAL GRUPO FINANCIERO GALICIA S A 62.9% 0.9%
LEN LENNAR CORP 46.5% 2.8%
GRBK GREEN BRICK PARTNERS INC 42.9% 0.7%
MHK MOHAWK INDS INC 32.2% 1.5%
MPC MARATHON PETE CORP 27.2% 1.1%

Grupo Supervielle S.A. (NYSE: SUPV) appears to be the most undervalued stock in the fund based on the average price target from Wall Street analysts.

Pampa Energia S.A. (NYSE: PAM) appears to be the second most undervalued stock in the portfolio. The company’s upside of 84.3% is very intriguing. With 62.9% margin of safety, Grupo Financiero Galicia S.A. (NASDAQ: GGAL) is the third most attractively priced security.

Other notable holdings with nice upside potential includes Lennar Corporation (NYSE: LEN), Green Brick Partners, Inc. (NASDAQ: GRBK), Mohawk Industries, Inc. (NYSE: MHK) and Marathon Petroleum Corporation (NYSE: MPC).


Why It’s Worth Monitoring Third Point Holdings

Daniel Loeb has made a name for himself generating impressive, and consistent, returns over the last two decades. In the process he has amassed a fortune of $3.2 billion, putting him at number 240 on the Forbes 400 list.

Loeb founded Third Point in 1995 that now runs two hedge funds. He started the company with $3.3 million from family and friends, in office space borrowed from David Tepper’s Appaloosa Capital. The Third Point Offshore Limited fund has generated annual returns of 15.8% since inception (1996) while the Ultra Limited fund has generated returns of 23.7% since its inception in 1997. This compares favorably to the S&P500 which has averaged less than 8% per year since 1997.

His investment style involves shareholder activism meaning he invites controversy. Loeb, therefore, finds himself in the media often and is not afraid to get into public arguments with those he disagrees with. Warren Buffett, George Clooney, the CEOs of Sony and Yahoo, and fellow activist investor Bill Ackman have all found themselves on the receiving end of his verbal attacks.

Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, Third Point’s holdings above represent positions held as of March 31st and not necessarily reflective of the fund’s current stock holdings.

However, most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street can be a powerful way to narrow down the list.

The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Third Point page.

As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.

Expertise: Valuation, financial statement analysis. Matt Hogan is also a co-founder of finbox.io. His expertise is in investment decision making. Prior to finbox.io, Matt worked for an investment banking group providing fairness opinions in connection to stock acquisitions. He spent much of his time building valuation models to help clients determine an asset’s fair value. He believes that these same valuation models should be used by all investors before buying or selling a stock. His work is frequently published at InvestorPlace, Benzinga, ValueWalk, AAII, Barron’s, Seeking Alpha and investing.com. Matt can be reached at matt@finbox.io or at +1 (516) 778-6257.

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