Tao Value, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +3.96% was delivered by the fund for the Q1 of 2021, below the MSCI All Country World Index that delivered a +4.88% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Tao Value, in their Q1 2021 investor letter, mentioned Pinduoduo Inc. (NASDAQ: PDD), and shared their insights on the company. Pinduoduo Inc. is a Shanghai, China-based agriculture-focused technology platform that currently has a $169.2 billion market capitalization. Since the beginning of the year, PDD delivered a -24.00% return, while its 12-month gains are up by 197.23%. As of April 29, 2021, the stock closed at $137.49 per share.
Here is what Tao Value has to say about Pinduoduo Inc. in their Q1 2021 investor letter:
“Pinduoduo reported a strong quarter, reporting MAU of 720 million, now surpassing Taobao. However, it was overshadowed by a bigger news on Colin Huang resigning from Board and completely disassociating himself from PDD’s management & operation. Huang explained in his letter to shareholders that he would start fundamental research initiatives in food science. Although not entirely shocked (as he already stepped down from CEO July 2020), I am surprised by the fast pace of such transition. I remain confident in the organization and the culture Huang built but will monitor it closely.”
Our calculations show that Pinduoduo Inc. (NASDAQ: PDD) 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, Pinduoduo Inc. was in 54 hedge fund portfolios, compared to 34 funds in the third quarter. PDD delivered a -18.51% 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.
