3 Value Stocks Backed by World’s Largest Activist Hedge Fund

According to HedgeFollow tracker, Elliott Investment Management has had nearly 17% 3-year annualized return performance across its top 50 weighted holdings. Founded by Paul Singer, the activist hedge fund seeks out troubled/fertile companies for the purpose of acquiring a large stake to then affect their decision-making.

Most notably, Singer sought to oust Jack Dorsey from Twitter leadership in early 2020, only to sell the stake in 2022 prior to Elon Musk finalizing his acquisition. This February, Elliott Investment Management poured $2.5 billion in oil refining company Phillips 66 (NYSE:PSX), raising the stake significantly from $1 billion in 2023.

Year-to-date, PSX stock is outpacing S&P 500 (SPX) at 11% vs 2.2% respectively. With a portfolio worth $16.67 billion across 45 positions, the fund serves as a useful signal for all types of investors. But which Elliott-targeted companies should value investors consider for long-term exposure?

1. Triple Flag Precious Metals

With the largest weight in Elliott Management’s portfolio, at 12.07%, Triple Flag Precious Metals (NYSE:TFPM) company seeks a stake in mining operations involved with precious metals. Triple Flag then generates revenue based on the royalties tied to the life-of-mine production.

Eschewing direct involvement in the actual mining, Triple Flag gives investors an exposure to exploratory breakthroughs, mine-life extensions and operational expansions in general. This is especially pertinent under President Trump’s second term.

If the Trump admin is serious about a tariff-driven economy and onshoring, the need for base materials like gold, silver, copper, lithium, nickel and others will grow in demand. As of February investor representation, Triple Flag holds stakes in 30 producing assets, 45 in development and 155 in exploration, mainly in North America, but also in western Latin America, Australia, Mongolia and South Africa.

Since 2017, Triple Flag significantly increased its operating cash flow as well as gross profit margin.

Triple Flag Valuations

Image credit: Triple Flag Precious Metals

Over a one year period, TFPM stock is up 40%. Presently priced at $16.87 per share, they pay out $0.22 annual dividend per share at a dividend yield of 1.31%. According to the Wall Street Journal, the average TFPM price target is $20.78, which is a significant upside potential given the relatively safe exposure to raw materials extraction.

2. CorMedix

This biopharma company firmly exited the penny stock status in the second half of 2024. Now priced at $9.95, CorMedix (NASDAQ:CRMD) stock is up 200% over the year. Elliott Investment has a stake at around 7.13 million shares, constituting nearly 5% of the company’s ownership.

The main driver of CRMD stock value is the commercial contract for DefenCath made in September 2024. By becoming the supplier of DefenCath (taurolidine and heparin), a solution for reducing incidences of catheter-related bloodstream infections (CRBSI), for a global healthcare company, CorMedix secured a stable revenue stream to over 2,000 clinics in the US.

In turn, this opens more opportunities for CorMedix in the dialysis market, which has a projected CAGR of 4.3% between 2024 and 2032, according to BioSpace.

In January’s investor presentation, CorMedix outlined further opportunities with mid-size and large dialysis organizations. The company pointed out that only 5 such entities account for 85% of dialysis patients, which makes for easier market capture.

Investors should also note that CorMedix has zero reported debt, while holding $52 million in cash reserves. According to WSJ forecasting data, the average CRMD price target is $16.83 per share, which still gives opportunities for investors who missed out.

3. Howmet Aerospace

When we last covered this aerospace company in March 2024, Howmet Aerospace (NYSE:HWM_p) stock was priced at $69 per share. Its present price level has nearly doubled, at $130.34. Elliott Management holds 17.27 million HWM shares, making up 4.20% of the ownership.

Howmet is a critical cog in the military-industrial complex, providing the defense sector with advances in materials, precision-engineered turbine components, and other advanced structural elements. In short, as USG relies on the military to support its global hegemony and USD reserve currency, Howmet is one of key companies materializing that power projection.

Case in point, while Lockheed Martin (NYSE:LMT) manufactures the F-35 Lightning II, Howmet is behind much of this warfighter’s airframe structure and the components used for its engine.

In February’s FY2024 investor presentation, Howmet reported a 9% year-over-year revenue increase to $1.9 billion. Likewise, its net income increased to $314 million from $236 million the year prior. In addition to airfoils used in the military, Howmet also gained ground in the commercial sector, being one of the world’s largest gas turbine blades suppliers.

On the commercial airlines front, Howmet expects further positive gains from the upgrade cycle, counting on both Boeing (NYSE:BA) and Airbus. It’s revenue growth outlook increased to 8% yoy for mid-2025 vs prior 7.5% outlook, but this depends on projected aircraft building rates:

“We continue to employ a cautious view on underlying build rates in our guidance, assuming The Boeing Company produces approximately 25 737-MAX aircraft per month and 6 787 aircraft per month on average across 2025 and Airbus averages mid-50s per month on the A320 and approximately 6 per month on the A350.”

Howmet’s February earnings report for FY 2024

According to the WSJ forecast, the average HWM (BMV:HWM) price target is $145.07 vs the current price of $130.34 per share.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

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