Cedar Creek Partners LLC, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 13.7% was recorded by the fund for the Q4 of 2020, outperforming the S&P 500 index that had a 12.2% gain, but below its Russell 2000 benchmark that delivered a 31.4% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
In their Q4 2020 investor letter, Cedar Creek Partners mentioned The Charles Schwab Corporation (NYSE: SCHW) and shared their insights on the company. The Charles Schwab Corporation is a Westlake, Texas-based financial services company that currently has a $125.06 billion market capitalization. Since the beginning of the year, SCHW delivered a 25.26% return, impressively extending its 12-month gains to 93.20%. As of April 01, 2021, the stock closed at $66.44 per share.
Here is what Cedar Creek Partners has to say about The Charles Schwab Corporation in their Q4 2020 investor letter:
“Subsequent to quarter end we closed out our recent position in Charles Schwab (SCHW) after it climbed nearly 40% in the quarter. The market seemed to go from not pricing in any future synergies from the TD Ameritrade acquisition to pricing most of them in, so we took profits and moved on to more attractive ideas.”
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Our calculations show that The Charles Schwab Corporation (NYSE: SCHW) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, The Charles Schwab Corporation was in 61 hedge fund portfolios, compared to 53 funds in the third quarter. SCHW delivered a 25.26% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
