Ensemble Capital, an investment management firm, published its “Ensemble Fund” first quarter 2021 investor letter – a copy of which can be seen here. A return of 3.80% was delivered by the fund in the Q1 of 2021, below its S&P 500 benchmark that delivered a 6.17% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Ensemble Capital, in their Q1 2021 investor letter, mentioned Ferrari N.V. (NYSE: RACE) and shared their insights on the company. Ferrari N.V. is a Maranello, Italy-based luxury sports car manufacturer that currently has a $52.8 billion market capitalization. Since the beginning of the year, RACE delivered a -6.44% return, while its 12-month gains are up by 35.90%. As of April 21, 2021, the stock closed at $214.75 per share.
Here is what Ensemble Capital has to say about Ferrari N.V. in their Q1 2021 investor letter:
“Notable detractors to the Fund’s returns this quarter (included) Ferrari. Ferrari (4.8% weight in the Fund) continues to look for a CEO to replace Louis Camilleri who resigned in December after suffering from COVID. The incoming CEO would be Ferrari’s third in recent years, following the untimely death of Sergio Marchionne in 2018. Nevertheless, Ferrari is in good hands with Chairman John Elkann, whose family are major investors in Ferrari and are well acquainted with the brand. Full year results were impacted by the 7-week COVID-related production suspension, which resulted in deliveries being down 10% compared with the prior year. Investors were concerned about 2021 guidance given continued worries about COVID impacts in the US and Europe and whether Ferrari will be able to hit its stated 2022 targets. But Ferrari did an amazing job maintaining production in the midst of a pandemic and we remain confident in Ferrari’s potential well beyond 2022.”
Our calculations show that Ferrari N.V. (NYSE: RACE) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Ferrari N.V. was in 29 hedge fund portfolios, compared to 31 funds in the third quarter. RACE delivered a 0.51% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
