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Colfax Corp (CFX) Has Risen 7% in Last One Year, Underperforms Market

Alex Smith
·3 mins read

If you are looking for the best ideas for your portfolio you may want to consider some of Del Principe O’Brien Financial Advisors top stock picks. Del Principe O’Brien Financial Advisors, an investment management firm, is bullish on Colfax Corp (NYSE:CFX) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Colfax Corp (NYSE:CFX) stock. Colfax Corp (NYSE:CFX) manufactures welding, air and gas handling equipment, and medical devices.

In August 2019, Del Principe O’Brien Financial Advisors had released its Q2 2019 investor letter. Colfax Corp (NYSE:CFX) stock has posted a return of 7.2% in the trailing one year period, underperforming the S&P 500 Index which returned 10.2% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Colfax Corp (NYSE:CFX) stock has fallen by 15.7%.

In Q2 2019 investor letter, Del Principe O’Brien Financial Advisors said the fund posted a return of 7.1% in the second quarter of 2019, outperforming the S&P 500 Index which returned 4.30% in the same period. Let’s take a look at comments made by Del Principe O’Brien Financial Advisors about Colfax Corp (NYSE:CFX) stock in the Q2 2019 investor letter.

"In February of this year, Colfax completed its biggest deal ever: the purchase of orthopedic solutions leader DJO Global Inc., for $3.15 billion. Colfax bought the company to tap into the growing demand among aging baby boomers for medical devices such as knee and hip implants. The acquisition marks a significant improvement in Colfax’s portfolio. Compared with its other brands, DJO’s orthopedic products provide a larger end market, higher margins, and lower cyclicality, all of which, in our eyes, boosts Colfax’s intrinsic value."

Doctor Specialties with Best Lifestyle
Doctor Specialties with Best Lifestyle

Image Point Fr/Shutterstock.com

In Q2 2020, the number of bullish hedge fund positions on Colfax Corp (NYSE:CFX) stock increased by about 22% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Colfax's growth potential. Our calculations showed that Colfax Corp (NYSE:CFX) 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 leave no stone unturned when looking for the next great investment idea. 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.