Miller Value Partners recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Miller Value Partners Opportunity Equity Fund posted a return of -38.4% for the quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Miller Value Partners 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, Miller Value Partners highlighted a few stocks and Cedar Fair L P (NYSE:FUN) is one of them. Cedar Fair owns and operates amusement parks. Year-to-date, Cedar Fair L P (NYSE:FUN) stock lost 39.1% and on June 11th it had a closing price of $32.67. Here is what Miller Value Partners said:
“Theme park operator Cedar Fair (FUN) fell 66.15% during the period with travel and leisure stocks after President Trump restricted travel to the US and government agencies recommended the restriction of large crowds in response to COVID-19. That said, the company reported solid Q4 results with revenue of $257M and EBITDA of $54.6M, slightly below consensus of $267M and $64.7M, respectively, on one fewer week of operations Y/Y. On a same-week basis, revenue rose +13% Y/Y driven by a +16% increase in visits while out-of-park spend came in higher than expected at +9.1%. The long-term outlook remains intact with management noting early season sales are +40% (following the 50% increase in 3Q19). Management also introduced a new long-term EBITDA target of $600M by 2024 (3.5% compound annual growth rate (CAGR)). In addition, insiders including CEO Richard Zimmerman purchased over 50,000 shares totaling $1.97M.”
In Q4 2019, the number of bullish hedge fund positions on Cedar Fair L P (NYSE:FUN) stock decreased by about 31% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with FUN’s growth potential. Our calculations showed that Cedar Fair L P (NYSE:FUN) 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 leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. 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.
