Curreen Capital recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 32.86% for the quarter, outperforming their benchmark, the S&P 500 Index which returned 20.54% in the same quarter. You should check out Curreen Capital’s top 5 stock picks which helped them beat the market by nearly 12 percentage points. 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, Curreen Capital highlighted a few stocks and TopBuild Corp (NYSE:BLD) is one of them. TopBuild Corp (NYSE:BLD) provides insulation installation services. Year-to-date, TopBuild Corp (NYSE:BLD) stock gained 45.6% and on August 12th it had a closing price of $148.32. Curreen Capital cared to mention TopBuild Corp (NYSE:BLD) in its investor letter, though they didn’t say why they really like the stock. All they said is this:
“The largest installer and distributor of insulation in the U.S., the business is driven by housing starts. TopBuild spun out of Masco in July 2015, and has been growing revenues and profits ever since. Management uses free cash flow to acquire related businesses and to repurchase stock at good prices. The company’s returns on tangible capital exceed 30%. I believe that housing starts remain well below what 330 million US residents require, which gives TopBuild plenty of runway for further growth.”
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In Q1 2020, the number of bullish hedge fund positions on TopBuild Corp (NYSE:BLD) stock decreased by about 31% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with TopBuild’s growth potential. Our calculations showed that TopBuild Corp (NYSE:BLD) 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. We go through lists like the 10 most profitable companies in America 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. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. 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.
