New York (HedgeCo.net) \u2013 Aluminum giant Alcoa has struggled for most of 2015 as the stock price fell from $15.63 to start the year to a closing low of $7.82 on November 12. That put the stock at a 50% loss until it started rallying in recent weeks, but it is still down over 40% on the year.<\/p>\n
Despite the terrible price performance, the company has been attracting bullish bets from two prominent hedge funds in recent months. Seth Klarman\u2019s Baupost Group revealed an allocation of 8.4% to Alcoa in their most recent 13F filing and Paul Singer\u2019s Elliott Management revealed an investment in the company worth 6.4% of their portfolio.<\/p>\n
Baupost and Elliott are both value-oriented hedge funds that are known for being more long-term with their investments. Neither fund is known for being activist investors, so it is unlikely they have made their investments with a goal of shaking up the company and forcing management to make changes.<\/p>\n
Both Baupost and Elliott have outperformed the market as a whole over the long run with Elliott averaging 14.6% on an annualized basis since inception and Baupost has averaged 17% since inception. The historical annual return of the S&P 500 is just over 10%, giving both funds an impressive track record.<\/p>\n
Rick Pendergraft
\nResearch Analyst
\nHedgeCoVest<\/p>\n","protected":false},"excerpt":{"rendered":"
New York (HedgeCo.net) \u2013 Aluminum giant Alcoa has struggled for most of 2015 as the stock price fell from $15.63 to start the year to a closing low of $7.82 on November 12. That put the stock at a 50% […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[919,16,3,16048],"tags":[],"class_list":["post-50867","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-research","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/50867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=50867"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/50867\/revisions"}],"predecessor-version":[{"id":50868,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/50867\/revisions\/50868"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=50867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=50867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=50867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}