Hedge fund investor Aaron Stern is a big believer in the German utility E.ON turnaround.
E.ON’s “management team has engulfed in a multi-year transformation, which has been nothing short of spectacular but has yet to be rewarded by the market,” he said on CNBC’s “Worldwide Exchange” Wednesday.
The investor said the company has sold off its legacy coal business, spun out its non-core assets and trades at a “significant discount” to its industry peers.
“Yes we do believe [E.ON shares] could double over the next two years,” he said.
He recommended the investment at Sohn Tel Aviv conference Wednesday.
Stern is a managing director and partner at Fir Tree Partners. He manages the firm’s international and emerging markets investments. Fir Tree has $8 billion of assets under management.
Sohn is series of widely anticipated hedge fund conferences, where managers volunteer their time and best investment ideas to raise money in the fight against childhood cancer.