Curreen Capital recently released its Q2 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 1.4% for the quarter, underperforming their benchmark, the S&P 500 Index which returned 8.55% in the same quarter. You should check out Curreen 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, Curreen Capital highlighted a few stocks and Credit Acceptance Corp (NASDAQ:CACC) is one of them. Credit Acceptance Corp (NASDAQ:CACC) is an auto finance company providing automobile loans and other related financial products. Year-to-date, Credit Acceptance Corp (NASDAQ:CACC) stock gained 29% and on September 30th it had a closing price of $585.30. Curreen Capital cared to mention Credit Acceptance Corp (NASDAQ:CACC) in its investor letter, though they didn’t say why they really like the stock. All they said is this:
“Credit Acceptance is a subprime auto lender, enabling subprime borrowers to buy vehicles from used car dealerships. The business has profitably gained share in a large and difficult market for more than two decades. Management allocates free cash flow to growing the business and repurchasing shares at attractive prices. Credit Acceptance currently trades at an attractive upside-to-downside ratio.”
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Curreen Capital has been a long time Credit Acceptance Corp (NASDAQ:CACC) bull. In January 2021, we shared Curreen Capital CACC’s thesis in this article.
In Q1 2021, the number of bullish hedge fund positions on Credit Acceptance Corp (NASDAQ:CACC) stock decreased by about 21% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in CACC’s growth potential. Our calculations showed that Credit Acceptance Corp (NASDAQ:CACC) isn’t ranked among the 30 most popular stocks among hedge funds.
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.
