Guardian Fund, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 52.21% was recorded by the fund for the year end 2020, outperforming its S&P 500 benchmark that delivered an 18.40%. return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Guardian Fund, in their Q4 2020 Investor Letter said that they acquired a position in Palantir Technologies Inc. (NYSE: PLTR) because they believe that the company’s revenues will grow faster than its expenses. Palantir Technologies Inc. is a software company that currently has a $60 billion market cap. For the past 3 months, PLTR delivered a massive 169.07% return and settled at $31.76 per share at the closing of February 3rd.
Here is what Guardian Fund has to say about Palantir Technologies Inc. in their investor letter:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
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Last December 2020, we published an article telling that Palantir Technologies Inc. (NYSE: PLTR) was in 31 hedge fund portfolios, its all time high statistics. PLTR delivered a 34.44% return YTD.
Our calculations show that Palantir Technologies Inc. (NYSE: PLTR) 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
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Disclosure: None. This article is originally published at Insider Monkey.
