Oakmark Funds, an investment management firm, published its “Oakmark Global Fund” first quarter 2021 investor letter – a copy of which can be seen here. A return of 11.1% was reported by the fund for the Q1 of 2021, outperforming both its MSCI World benchmark that delivered a 4.9% return and the Lipper Global Fund Index that had 3.7% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Oakmark Global Fund, in their Q1 2021 investor letter, mentioned General Dynamics Corporation (NYSE: GD) and shared their insights on the company. General Dynamics Corporation is a Reston, Virginia-based aerospace and defense company that currently has a $52.9 billion market capitalization. Since the beginning of the year, GD delivered a 24.27% return, extending its 12-month gains to 33.53%. As of April 12, 2021, the stock closed at $184.94 per share.
Here is what Oakmark Global Fund has to say about General Dynamics Corporation in their Q1 2021 investor letter:
“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated product. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”
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Our calculations show that General Dynamics Corporation (NYSE: GD) 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, General Dynamics Corporation was in 40 hedge fund portfolios compared to 37 funds in the third quarter. GD delivered a 20.48% 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.
