Top 10 Stock Picks of Mark Lee’s Mountaineer Partners

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In this article, we will take a look at the top 10 stock picks of Mark Lee’s Mountaineer Partners. If you want to skip our comprehensive analysis of the history, investment philosophy, and hedge fund preference of Mark Lee’s Mountaineer Partners Management, you can go directly to Top 5 Stock Picks of Mark Lee’s Mountaineer Partners.

Mark Lee is the founder of Mountaineer Partners Management and has had an active place in the investment advisory industry for the past 29 years. He acquired an MBA from the prestigious Harvard Business School. Mr. Lee’s career in finance began after he completed his MBA  when he became an investment banker at Credit Suisse First Boston in 1992. In 1999, Mr. Lee joined Contrarian Capital Management, LLC as a debt analyst, where he later served as the sole Portfolio Manager for the Contrarian Long Short Fund until 2011. In the meantime, Mr. Lee also served in the management of the Contrarian Distressed Equity Fund from the year 2008. Mark Lee laid the foundation of Mountaineer Partners Management in 2011.

In addition to the top 10 stock picks of Mark Lee’s Mountaineer Partners that are identified in this article, the fund held the stocks of several famous corporations by the end of the second quarter of 2021, namely PROG Holdings Inc (NYSE:PRG), BorgWarner Inc. (NYSE:BWA), and Vornado Realty Trust (NYSE:VNO). 

Our Methodology

The top 10 stock picks of Mark Lee’s Mountaineer Partners Management were picked on the basis of their highest positions in the hedge fund’s 13F holdings. In order to compile the top 10 stock picks of Mark Lee’s Mountaineer Partners, we picked the following holdings of Mountaineer Partners Management from the fund’s Q2 portfolio.

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Top 10 Stock Picks of Mark Lee’s Mountaineer Partners

10. Allegheny Technologies Incorporated (NYSE:ATI)

Mountaineer Partners Management’s Stake Value: $9.108 million

 

Percentage of Mountaineer Partners Management’s 13F Portfolio: 6.63%

 

Number of Hedge Fund Holders as of Q2 2021: 32

Headquartered in Pittsburgh, Pennsylvania, Allegheny Technologies Incorporated (NYSE: ATI) is a specialty metals company. By the end of Q2 2021, Mountaineer Partners Management held 436,839 shares of the company which have a combined value of over $9 million. Allegheny Technologies Incorporated (NYSE: ATI) is, therefore, one of the top 10 stock picks of Mark Lee’s Mountaineer Partners Management.

Ken Fisher’s Fisher Asset Management has the most shares in Allegheny Technologies Incorporated (NYSE: ATI); the fund held 2,435,145 shares of the company at the end of Q3 2021 which have a combined worth of roughly $40.496 million.

On October 28 this year, Allegheny Technologies Incorporated (NYSE: ATI) announced Q3 revenues of $726 million, beating estimates of $668.52 million by $57.48 million. The revenue showed year-over-year growth of 21.4%. Moreover, the EPS was announced to be $0.35, which beat consensus by $0.38.

9. FirstEnergy Corp. (NYSE:FE)

Mountaineer Partners Management’s Stake Value: $9.578 million

 

Percentage of Mountaineer Partners Management’s 13F Portfolio: 6.97%

 

Number of Hedge Fund Holders as of Q2 2021: 36

Founded in 1997, FirstEnergy Corp. (NYSE: FE) is an electric utility company and is headquartered in Akron, Ohio. In addition to electricity generation, the company transmits and distributes electricity, and also provides energy management services. Mountaineer Partners Management held 257,400 shares of the company by the end of the second quarter of 2021, which amount to over $9.5 million.

On October 28, FirstEnergy Corp. (NYSE: FE) reported its Q3 2021 revenue as $3.1 billion, missing consensus by $10 million. Following this, on November 2, Neil Kalton, an analyst at Wells Fargo, upgraded FirstEnergy Corp. (NYSE: FE) to “Equal-Weight” from “Underweight” and raised the previous price target to $42 from $40.

Along with the top 10 stock picks of Mark Lee’s Mountaineer Partners Management discussed in the article, the fund held shares in PROG Holdings Inc (NYSE: PRG), BorgWarner Inc. (NYSE: BWA), and Vornado Realty Trust (NYSE: VNO) by the end of Q2 2021.

8. The Middleby Corporation (NASDAQ:MIDD)

Mountaineer Partners Management’s Stake Value: $9.876 million

 

Percentage of Mountaineer Partners Management’s 13F Portfolio: 7.19%

 

Number of Hedge Fund Holders as of Q2 2021: 35

The Middleby Corporation (NASDAQ: MIDD), headquartered in Elgin, Illinois, manufactures cooking equipment and appliances for both commercial and residential use. The company specializes in equipment for producing food and beverages, and refrigeration equipment.

As of Q2 2021, Mountaineer Partners Management held 57,000 shares in the company, making it one of the top 10 stock picks of Mark Lee’s Mountaineer Partners Management. On November 15, Timothy Thein, an analyst at Citigroup Inc., raised the firm’s price target on The Middleby Corporation (NASDAQ: MIDD) to $215 from its previous value of $200 and maintained a “Buy” rating on the shares.

7. BWX Technologies Inc (NYSE:BWXT)

Mountaineer Partners Management’s Stake Value: $10.412million

 

Percentage of Mountaineer Partners Management’s 13F Portfolio: 7.58%

 

Number of Hedge Fund Holders as of Q2 2021: 20

Headquartered in Lynchburg, Virginia, BWX Technologies Inc (NYSE: BWXT) refines fuel and nuclear components. The company provides research reactor fuel elements to domestic educational institutes as well as national laboratories. Mountaineer Partners Management held 179,150 shares of BWX Technologies Inc (NYSE: BWXT) by the end of the second quarter of 2021, making it one of the top 10 stock picks of Mark Lee’s Mountaineer Partners Management. Moreover, Mountaineer Partners Management has increased its stakes in BWX Technologies Inc (NYSE: BWXT) by 11% during the second quarter of 2021 as compared to Q1 2021.

On November 1, BWX Technologies Inc (NYSE: BWXT) reported its revenue for Q3 2021 as $499 million, missing the consensus of $535.18 million by $36.18 million. Consequently, on November 2, Michael Ciarmoli, an analyst at Truist Securities, lowered the price target on BWX Technologies Inc (NYSE: BWXT) to $70 from $77 yet kept a “Buy” rating on the shares. On the same day, Tate Sullivan, an analyst at Maxim Group LLC, lowered the firm’s price target to $77 from $80, maintaining a “Buy” rating on the shares.

Upslope Capital Management, an investment management firm, published its third-quarter 2021 investor letter in which it shared its stance about BWX Technologies Inc (NYSE: BWXT). Here is what the firm had to say about BWX Technologies Inc (NYSE: BWXT) in its Q3 2021 investor letter:

BWX Technologies designs and produces nuclear reactors, components and fuel, primarily for the U.S. Government and Navy (and, more recently, NASA). The company is the sole supplier for its Naval products (~75% of sales), which are used for the power and propulsion of all of the Navy’s aircraft carriers and submarines. With nuclear subs (aka “boomers”) forming the backbone of the “Sea” leg of the Nuclear Triad, BWX plays a vital and sensitive role supporting the national security of the United States. Of course, BWX is exceptionally well-positioned should the saber-rattling vis-à-vis China continue. The recent Aukus security pact, which may eventually benefit BWX, illustrates the urgent and strategic importance of maintaining a modern nuclear-powered sub fleet.

Even if relations with China stabilize (and hopefully they do), BWX shares seem poised to outperform. After four years of essentially going nowhere, the stock currently trades near the low-end of its historical valuation range – just over 13x EBITDA vs. typical range of 13-16x. With a literal monopoly position (albeit against a sole purchaser), BWX has historically generated modest top-line growth with attractive returns on capital (mid-20s). Given the stability of the business and its competitive position, as well as the current geopolitical backdrop, current valuation seems very reasonable…” (Click here to see the full text)

6. Vishay Intertechnology (NYSE:VSH)

Mountaineer Partners Management’s Stake Value: $10.769 million

 

Percentage of Mountaineer Partners Management’s 13F Portfolio: 7.84%

 

Number of Hedge Fund Holders as of Q2 2021: 29

Vishay Intertechnology (NYSE: VSH), founded in 1962 by Felix Zandman, produces semiconductors and other electronic components. The company is headquartered in Malvern, Pennsylvania. Mountaineer Partners Management held 477,532 shares of the company by the end of Q2 2021. Moreover, the fund has increased its stakes in Vishay Intertechnology (NYSE: VSH) by 9% during the second quarter of 2021 as compared to Q1 2021.

On October 14, Karl Ackerman, an analyst at Cowen Inc., decreased the price target on Vishay Intertechnology (NYSE: VSH) to $22 from $27 and maintained a “Market Perform” rating on the stock. On November 3, Vishay Intertechnology (NYSE: VSH) reported its Q3 2021 revenue of $813.663 million, which missed the estimate of $832.81 million by $19.147 million.

Along with the top 10 stock picks of Mark Lee’s Mountaineer Partners Management discussed in this article, the fund also held shares in PROG Holdings Inc (NYSE: PRG), BorgWarner Inc. (NYSE: BWA), and Vornado Realty Trust (NYSE: VNO) by the end of Q2 2021.

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Disclosure: None. Top 10 Stock Picks of Mark Lee’s Mountaineer Partners is originally published on Insider Monkey.