Lookback: Miller Value Partners 2019 Genworth Financial (GNW) Thesis

Alex Smith
·3 min read

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Genworth Financial Inc (NYSE:GNW) stock. In its Opportunity Equity Q3 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Genworth Financial Inc (NYSE:GNW) stock. Genworth Financial Inc (NYSE:GNW) is an insurance company.

On October 21, 2019, Miller Value Partners had released its Opportunity Equity Q3 2019 investor letter. The investment firm said that Genworth Financial Inc (NYSE:GNW) was one of the biggest contributors to its performance in Q3 2019. Genworth Financial Inc (NYSE:GNW) stock has posted a return of 2.7% in the trailing one year period, underperforming the S&P 500 Index which returned 15.4% in the same period. This suggests that the investment firm was wrong in its decision.

Miller Opportunity Equity fund posted a return of -1.81% in the third quarter of 2019, underperforming the S&P 500 Index which returned 1.70% in the same quarter. Let’s take a look at comments made by Miller Value Partners about Genworth Financial Inc (NYSE:GNW) stock in the Q3 2019 investor letter.

"Genworth Financial Inc. (GNW) rose 18.6% as the company announced an agreement to sell its 57% controlling stake of its Canadian unit to Brookfield Business Partners LP for C$2.4B. The company hopes this will help push forward their merger with Oceanwide after agreeing to another extension of the deadline to November 2019."

Pixabay/Public Domain

In August 2020, we published an article revealing Miller Value Partners' bullish investment thesis on Genworth Financial Inc (NYSE:GNW) stock in its Q2 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Genworth Financial Inc (NYSE:GNW).

In Q2 2020, the number of bullish hedge fund positions on Genworth Financial Inc (NYSE:GNW) stock increased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Genworth's growth potential. Our calculations showed that Genworth Financial Inc (NYSE:GNW) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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, 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 real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. 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. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.