Laughing Water Capital recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 29.5% for the quarter (net of fees), outperforming their benchmark, the S&P 500 Index which returned 20.5% in the same quarter. You should check out Laughing Water Capital’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, Laughing Water Capital highlighted a few stocks and APi Group Corp (NYSE:APG) is one of them. APi Group Corp (NYSE:APG) provides construction equipment and services. Year-to-date, APi Group Corp (NYSE:APG) stock gained 45.5% and on August 18th it had a closing price of $15.35. Here is what Laughing Water Capital said:
“API Group (APG) – API joined the portfolio as a midsized special situation with the potential to be a longterm compounder earlier this year. The company is the product of a London based special purpose acquisition company (SPAC) put together by Martin Franklin, who has an impressive track record of building businesses, most notably at Jarden (JAH) which enjoyed a 30% CAGR for 15 years under Franklin’s watch. Recent volatility allowed us to purchase shares at a notable discount to the price at which Franklin and his related entities invested more than $100M of their own money. Further, we were able to buy our stock prior to the company up-listing to the New York Stock Exchange and benefitting from index inclusion, which led to rapid appreciation and a move into our top 5. APG is a holding company with multiple specialty contracting businesses under its umbrella. Most notably, APG is the largest provider of fire safety systems in the U.S., with a focus on service, which is mandated by law. Regardless of whether there is a recession, building owners must maintain the fire safety systems in their buildings, which provides defensive cash flows in an industry that can otherwise be cyclical. Thus far the analyst community has been content to let the tail wag the dog in their discussion of APG, but as Franklin begins to run his playbook and free cash flow moves higher, the fact that APG is a better business than peers, yet much cheaper than peers, should become apparent, which should drive shares considerably higher.”
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Yesterday, we published an article revealing that Greystone Capital is bullish about APi Group Corp (NYSE:APG) stock. The investment firm believes that the company represents a high-quality business which is trading for a cheap valuation.
Our calculations showed that APi Group Corp (NYSE:APG) 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. Cannabis stocks are roaring back in 2020, so we are checking out this under-the-radar stock. 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.
