Choice Equities Capital Management, a boutique investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 23.1% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.2% return, but below the 31.4% return of its Russel 2000 index. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Choice Equities Capital Management, in their Q4 2020 Investor Letter, said that Select Interior Concepts, Inc. (NASDAQ: SIC) has a promising figure in comparison to it’s current valuation. Select Interior Concepts, Inc. distributes interior building products and services. It currently has a $233.9 million market cap. For the past 3 months, SIC delivered an impressive 50.79% return and settled at $9.19 per share at the closing of February 19th.
Here is what Choice Equities Capital Management has to say about Select Interior Concepts, Inc. in their Q4 2020 investor letter:
“Moving along from any discussions around short-selling influences, finally, Select Interior Concepts looks to be turning the corner. New management has made a great deal of progress in streamlining company operations while taking unnecessary costs out of the business. Though incremental profits have not come through on the income statement just yet – largely a function of the company’s position in the homebuilding cycle as its design center business does not book revenue until the home sale is complete – an inflection appears to be right around the corner as the company looks set to report the last of year-over-year revenue declines from the spring building pause this coming quarter. Recent deals in this consolidating space suggest significant value as well. Just last week, the company’s only true peer was taken private by Blackstone at a 11x trailing EBITDA multiple, a promising figure in comparison to the company’s current valuation.”
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Last December, we published an article telling that Select Interior Concepts, Inc. (NASDAQ: SIC) was in 17 hedge fund portfolios, its all time high statistics. SIC delivered an impressive 124.80% return in the past 12 months.
Our calculations show that Select Interior Concepts, Inc. (NASDAQ: SIC) does not belong in our list of 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. 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.
