GreenWood Investors recently released its Q2 2020 Investor Letter, a copy of which you can download here. Steven Wood, CFA founded Greenwood Investors, LLC in 2010. This year so far the fund has underperformed its benchmark the MSCI ACWI All Cap. You should check out GreenWood’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, GreenWood Investors highlighted a few stocks and Vertiv Holdings Co (NYSE:VRT) is one of them. Vertiv Holdings Co (NYSE:VRT) manufactures electrical power equipment. Year-to-date, Vertiv Holdings Co (NYSE:VRT) stock gained 46.0% and on August 20th it had a closing price of $16.20. GreenWood Investors cared to mention Vertiv Holdings Co (NYSE:VRT) in its investor letter, though they didn’t say why they really like the stock. All they said is this:
“Vertiv, which makes cooling and power solutions for data centers, reported a 9% drop in second quarter organic revenue. Due to both supply and customer logistical issues, the company had trouble completing customer orders, which are accelerating at a record rate with the widespread increase in data consumption around the world (ending the second quarter with a record high backlog of $1.8 billion). Chris recently detailed Executive Chairman David Cote’s book, Winning Now, Winning Later, in an article which you can read by clicking here. Of course it didn’t take a genius to understand data center capacity was going to have to accelerate around the world just as Vertiv’s stock was cut in half earlier this year. We are excited to own Vertiv for the long-term, as Cote turns it into the Danaher of data-centers. With Cote, we are getting a seasoned manager from Honeywell, but in a much smaller company in an equally large addressable market. We are excited for him to exceed his Honeywell performance given a better and smaller collection of assets with stronger industry tailwinds.”
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In Q1 2020, the number of bullish hedge fund positions on Vertiv Holdings Co (NYSE:VRT) stock increased by about 11% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Vertiv’s upside potential. Our calculations showed that Vertiv Holdings Co (NYSE:VRT) 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.
