RiverPark Advisors, LLC recently published its Q3 2020 RiverPark Large Growth Fund commentary – a copy of which can be downloaded here. During the third quarter of 2020, the RiverPark Large Growth Fund returned 10.84% (institutional shares), compared to the total return of 8.93% by the S&P 500 Index. You should check out RiverPark’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, RiverPark apoke about Blackstone Group Inc (NYSE:BX) and Apollo Global Management Inc. (NYSE:APO) stocks. Blackstone Group Inc (NYSE:BX) and Apollo Global Management Inc. (NYSE:APO) are financial services company. Year-to-date, Blackstone Group Inc (NYSE:BX) stock gained 11.5% and on December 9th it had a closing price of $62.39. Year-to-date, Apollo Global Management Inc. (NYSE:APO) stock lost 1.6% and on December 9th it had a closing price of $46.95. Here is what RiverPark said:
“Blackstone & Apollo: Our alternative asset managers BX and APO were top detractors for the quarter as their results were affected by the COVID shutdowns, which have delayed the selling of assets and the realization of performance fees. Both companies (as well as our third alternative asset manager KKR) continue to generate consistently strong fee-related earnings (BX’s and APO’s fee-related earnings increased 28% and 9%, respectively, in the second quarter) and grow their assets under management (AUM) at impressive rates (BX’s and APO’s fee-generating AUM increased 12% and 45%, respectively, year over year).
While both face a temporary slowdown in investment realizations and near-term mark-to-market headwinds from the current crisis, most of their capital is long-dated or even permanent, most of their fees, which are high-margin and recurring, are not sensitive to the market, and both have billions of dollars of capital available to invest ($156 billion and $47 billion at the end of 2Q for Blackstone and Apollo, respectively). We continue to view BX and APO as two of the better risk-reward holdings in our portfolio, offering substantially better-than-average growth and cash flow fundamentals, and world class management teams, as well as dividend yields of 2.8% and 4.2%, respectively.”
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In Q2 2020, the number of bullish hedge fund positions on Blackstone Group Inc (NYSE:BX) stock decreased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Blackstone’s growth potential.
In Q2 2020, the number of bullish hedge fund positions on Apollo Global Management Inc. (NYSE:APO) stock decreased by about 15% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Apollo’s growth potential.
Our calculations showed that Blackstone Group Inc (NYSE:BX) and Apollo Global Management Inc. (NYSE:APO) aren’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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 scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
