Miller Value Partners, an investment management firm, published its ‘Opportunity Equity’ fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A net return of 35.4% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.15% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Miller Value Partners, in their Q4 2020 Investor Letter, said Farfetch Limited (NYSE: FTCH) was one of the top contributors in their portfolio in the fourth quarter of 2020. Farfetch Limited is an online luxury fashion retail company that currently has a $23.6 billion market cap. For the past 3 months, FANG delivered an impressive 52.20% return and settled at $69.51 per share at the closing of February 12th.
Here is what Miller Value Partners has to say about Farfetch Limited in their Q4 2020 investor letter:
“Farfetch Ltd. (FTCH) continued its climb in the quarter, returning 152.7%. The company really took off following the announcement of a landmark global partnership with Alibaba, Richemont & Artemis. The deal gives FTCH access to Alibaba’s platform and its 757M customers while also starting new relationships with Richemont’s brands. The agreement will provide an infusion of $1.15B from their new partners to help them grow out the platform in China and beyond and aligning the incentives of all parties. Later in the quarter, Alibaba’s President Michael Evans joined the board of directors. The company also announced another strong earnings report. For the 3rd quarter, the company posted revenue of $437.7M versus consensus estimates of $369.8M. Gross Margins were above expectations at 48% against estimates of 45%. The result was the company had an Earnings Before Income, Taxes, Depreciation, and Amortization (EBITDA) loss of just $10M, versus expectations for a $22M EBITDA loss in the quarter. Gross merchandise value also beat expectations coming in up 60% versus expectations for 40-45%. The company guided to EBITDA profitability in the fourth quarter ahead of expectations.”
Just recently, we published an article about Tollymore Investment Partners’ Farfetch Limited (NYSE: FTCH) investment thesis. According to our recent data, FTCH was in 40 hedge fund portfolios. Its all time high statistics is 43. FTCH delivered a massive 449.92% return in the past 12 months.
Our calculations show that Farfetch Limited (NYSE: FTCH) 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. 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.
