Antipodes Partners recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Antipodes Global Fund posted a return of -5.3% for the quarter, outperforming its benchmark, the MSCI AC World Net Index which returned -9.7% in the same quarter. You should check out Antipodes Partners top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.
In the said letter, Antipodes Partners spoke about Alibaba Group Holding Limited (NYSE:BABA) and JD.Com Inc (NASDAQ:JD) stocks. Alibaba and JD.Com are chinese e-commerce companies. Year-to-date, Alibaba Group Holding Limited (NYSE:BABA) stock lost 3.4% and on May 29th it had a closing price of $207.39. Year-to-date, JD.Com Inc (NASDAQ:JD) stock gained 54.5% and on May 29th it had a closing price of $54.33. Here is what Antipodes Partners said:
“The current environment has accelerated the secular adoption of online consumption and cloud computing which benefits Alibaba and JD.com, with both companies continuing to grow earnings despite the economic slowdown. JD.com also announced a $2b stock buy-back.”
In Q1 2020, the number of bullish hedge fund positions on Alibaba Group Holding Limited (NYSE:BABA) stock decreased by about 2% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with BABA’s growth potential.
In Q1 2020, the number of bullish hedge fund positions on JD.Com Inc (NASDAQ:JD) stock increased by about 43% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with JD’s growth potential.
Our calculations showed that Alibaba Group Holding Limited (NYSE:BABA) and JD.Com Inc (NASDAQ:JD) are ranked #4 and #27, respectively, 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. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. 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.
