New York-based Long Cast Advisers LLC, a boutique investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. Cumulative returns on accounts managed by Long Cast Advisers improved 30%, net of applicable fees, ahead of the baseline (S&P Total Return index, iShares MicroCap ETF and the Russell 2000 index). You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Long Cast Advisers, in its Q1 2021 investor letter, mentioned Sify Technologies Limited (NASDAQ: SIFY), and shared their insights on the company. Sify Technologies Limited is a Chennai, India-based internet company that currently has a $607.5 million market capitalization. Since the beginning of the year, SIFY delivered a 165.35% return, extending its 12-month gains to 266.34%. As of May 28, 2021, the stock closed at $3.22 per share.
Here is what Long Cast Advisers has to say about Sify Technologies Limited in its Q1 2021 investor letter:
“We reduced our stake in SIFY at attractive prices but continue to own meaningful shares. It is rumored that Blackstone is interested in acquiring a minority stake at a ~$1B valuation, which gets to ~$6 / share. Short of a Blackstone stake, splitting up the company would offer another path to value realization. The Board has already approved a plant to demerge. This would remove the shadow of the larger legacy Network business, which comps to Tata Communications at 6x-8x EBITDA multiple, from the faster growing Data Center and IT businesses, which comp to companies with reasonable market multiples of +15x EBITDA. The Data Center segment owns 10 data centers around major cities in India and has grown EBITDA +80% CAGR over the last two years. At prevailing acquisition multiples on a trailing basis, the data center business alone is worth +$3 / share.”
Our calculations show that Sify Technologies Limited (NASDAQ: SIFY) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Sify Technologies Limited was in 5 hedge fund portfolios, compared to 4 funds in the fourth quarter of 2020. SIFY delivered a -2.02% 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.
