Fiat Chrysler Automobiles (FCAU) Has Fallen 16% in Last One Year, Underperforms...

Fiat Chrysler Automobiles (FCAU) Has Fallen 16% in Last One Year, Underperforms Market

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If you are looking for the best ideas for your portfolio you may want to consider some of Laughing Water Capital’s top stock picks. Laughing Water Capital, an investment management firm, is bullish on Fiat Chrysler Automobiles N.V. (NYSE:FCAU) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Fiat Chrysler Automobiles N.V. (NYSE:FCAU) stock. Fiat Chrysler Automobiles N.V. (NYSE:FCAU) is an automobile company.

In July 2019, Laughing Water Capital had released its Q2 2019 investor letter. The investment firm said that Fiat Chrysler Automobiles N.V. (NYSE:FCAU) was a mid-sized position in its portfolio. Fiat Chrysler Automobiles N.V. (NYSE:FCAU) stock has posted a return of -16.4% in the trailing one year period, underperforming fund’s benchmark the S&P 500 Index which returned 11.0% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Fiat Chrysler Automobiles N.V. (NYSE:FCAU) stock has fallen by 20.8%.

Laughing Water Capital fund posted a return of 10.3% in the second quarter of 2019, outperforming fund’s benchmark the S&P 500 Index which returned 4.30% in the same period. Let’s take a look at comments made by Laughing Water Capital about Fiat Chrysler Automobiles N.V. (NYSE:FCAU) stock in the Q2 2019 investor letter.

“Fiat (FCAU) – Similar to EZPW, FCAU has fallen out of the top five as more capital was put into our more defensive investments. Despite cyclical exposure, Fiat’s brands Jeep and RAM leave the company ideally positioned to face any secular industry challenges, and management has multiple levers to pull to drive value in the years to come. Near the top of the list is a merger with another auto OEM. During the quarter it seemed as if a pairing with Renault was in the cards, but that deal has been called off for the time being. FCAU remains a mid-sized position in our portfolio.”

Fiat Chrysler

Credit: Fiat Chrysler Automobiles

Yesterday, we published an article revealing Chou Associates Management’s bullish investment thesis on Fiat Chrysler Automobiles N.V. (NYSE:FCAU) stock. The investment firm expect the company to start paying dividends post COVID-19 crisis.

In Q1 2020, the number of bullish hedge fund positions on Fiat Chrysler Automobiles N.V. (NYSE:FCAU) stock increased by about 9% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Fiat’s growth potential. Our calculations showed that Fiat Chrysler Automobiles N.V. (NYSE:FCAU) 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, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. 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 precious metals prices. So, we are checking out this junior gold mining stock. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. 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. 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.



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