Two Canadian Companies on a Hedge Fund Mogul’s Radar

David Einhorn picks two very different Canadian companies for a charity competition.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Ready for the latest proof that no tid-bit of information is safe in the internet age?  It was recently revealed that in a charity game known as Portfolios with Purpose, hedge fund mogul David Einhorn had taken a “long” position in Osisko Mining (TSX:OSK) and “shorted” Loblaw (TSX:L).

The charity

Portfolios with Purpose is an annual investing competition for charity.  Participants pony up as little as $100 to play (as much as $10,000), select 5 stocks to “hold” for a calendar year, then pick their favourite charity to play for.  At the end of the year, the top three performers from each experience pool (Master, Professional, Novice) split the pot and donate the winnings to their selected charity.

The contest has attracted some big name investors.  Along with David Einhorn, the likes of Leon Cooperman, Dan Loeb, and Joel Greenblatt are also involved.

Einhorn’s picks

Aside from the “long” Osisko and Loblaw “short”, Einhorn is also “long” Vodafone (NASDAQ:VOD) and Marvell Technology (NASDAQ:MRVL).  His fifth pick was a “short” U.S. Steel (NYSE:X) bet.

Einhorn is known to carry a bet on gold in his portfolio and therefore his Osisko pick could be more than just hypothetical.  Osisko’s shares are down 48% over the past year as the company’s stock has been caught up in the same drubbing that many junior miners have taken.

The company owns the Canadian Malartic project in Northern Quebec along with a portfolio of other sites at various stages of development.  Canadian Malartic is a big-time gold project, and Osisko’s stock is likely to do very well in a better market for resource plays.

Loblaw’s stock has plateaued after the company announced that it will proceed with spinning out its real-estate assets.  Growth is a significant issue for Canada’s biggest grocer and this could be the angle that Einhorn is keyed on with his “short”.

Foolish Takeaway

Einhorn’s “positions” in Osisko and Loblaw are nothing more than hypothetical.  They do however raise the level of intrigue for Canadian investors in the annual Ira Sohn Conference that takes place at the beginning of May.  At this conference, also for charity, Einhorn and a number of his “guru” hedge fund peers present their latest and greatest stock pick(s).  The reaction will be interesting if “long” Osisko or “short” Loblaw turn out to be Einhorn’s topic of discussion.

While gold continues to garner the attention of big names like Einhorn, uranium is flying under the radar of most investors.  Uranium has the potential to be the fuel that powers the 21st century.  Click here now for instant access to our FREE report titled “Fuel Your Portfolio With This Energetic Commodity”.  We think you’ll be surprised just how bright the future is for uranium, just how far two Canadian names have fallen, AND how fast they could rebound. Click here now to access this free report, and hop on for the nuclear ride of your life.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own shares in any of the companies mentioned in this report at this time.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

growing plant shoots on stacked coins
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy Now and Own for 25 Years

These top TSX dividend stocks look oversold and now offer attractive yields for TFSA and RRSP investors.

Read more »

money cash dividends
Investing

Passive-Income Power: How to Make $105/Week TAX FREE in a Bear Market

Investors may want to pursue a passive-income strategy in this bear market by snagging dividend stocks like Freehold Royalties Ltd.…

Read more »

Money growing in soil , Business success concept.
Energy Stocks

3 Growth Stocks up +30% in 2022

These three growth stocks are up over 30% in 2022 alone but have come down in the last few weeks…

Read more »

Oil pumps against sunset
Energy Stocks

2 Energy Stocks That Jumped Over 60% This Year

Consider investing in these two energy stocks amid the recent pullback after putting up stellar gains earlier this year.

Read more »

Profit dial turned up to maximum
Dividend Stocks

RRSP Investors: 2 Undervalued TSX Stocks to Buy Now for Total Returns

Top TSX dividend stocks are now on sale for RRSP investors seeking attractive total returns.

Read more »

TFSA and coins
Dividend Stocks

2 Beaten-Down Stocks to Buy for Your TFSA

Two beaten-down, but high-yield TSX stocks are profitable options for TFSA investors.

Read more »

Volatile market, stock volatility
Stocks for Beginners

3 Top TSX Stocks to Buy in Volatile Markets

Sitting on cash? Consider these three TSX stocks for the long term.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

Inflation Soars to 7.7%: 1 Dividend Stock to Buy Now

Enbridge (TSX:ENB)(NYSE:ENB) stock looks like a magnificent dividend stock to help Canadians deal with inflation at 7.7%.

Read more »