Arquitos Capital recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 2.1% for the third quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Arquitos Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the said letter, Arquitos Capital highlighted a few stocks and Enterprise Diversified Inc. (NYSE:SYTE) is one of them. Enterprise Diversified Inc. (NYSE:SYTE) is an asset management company. Enterprise Diversified Inc. (NYSE:SYTE) stock gained 10.5% and on November 9th it had a closing price of $4.00. Here is what Arquitos Capital said:
“We are also excited about SYTE. Its asset management subsidiary, Willow Oak Asset Management, recently brought on a new affiliate, SVN Capital. You’ll be hearing a lot more about SVN Capital’s founder, Shree Viswanathan, over the coming months. The team is excited to be working with him, and we see opportunities for significant growth in his firm.
SYTE trades for significantly below its liquidation value. Shares would have to advance more than 40% from the third quarter close to simply match Willow Oak’s investment in Alluvial Fund.
I expect shares to more appropriately reflect the company’s intrinsic value as the Willow Oak subsidiary strategy becomes more clear, as we continue to partner with new managers, and as we continue to streamline the business so the value of Willow Oak becomes clear.”
Pixabay/Public Domain
This isn’t the first time Arquitos Capital talked about Enterprise Diversified Inc. (NYSE:SYTE) favorably either. The investment firm has been a long time Enterprise Diversified Inc. (NYSE:SYTE) bull. In June 2020, we shared Arquitos Capital’s bullish Enterprise Diversified Inc. (NYSE:SYTE) thesis in this article.
Our calculations showed that Enterprise Diversified Inc. (NYSE:SYTE) 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 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.