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 JOYY Inc. (NASDAQ: YY), and shared their insights on the company. JOYY Inc. is a Guangzhou, China-based video social media platform that currently has a $7.5 billion market capitalization. Since the beginning of the year, YY delivered an 18.63% return, extending its 12-month gains to 77.93%. As of April 29, 2021, the stock closed at $95.93 per share.
Here is what Tao Value has to say about JOYY Inc. in their Q1 2021 investor letter:
“We exited YY after 3.5 years near all-time high. The annualized return (13~%) yet is below expectation, especially compared to founder CEO David Xueling Li’s net worth (mainly in YY shares) ballooning from $1.1B in 2018 to $2.3B in 2021. On value realization, I think YY did a good job, acquiring Bigo, spinning off then selling Huya & selling YY Live to Baidu. But as a minority shareholder, we were treated unfairly. E.g. the Bigo deal (for buying shares from executives including Li) was done by YY stock when the price was severely depressed, causing significant dilution for our ownership. We learned our lessons and will evaluate more rigorously in management’s partnership mindset in the future.”
Our calculations show that JOYY Inc. (NASDAQ: YY) 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, JOYY Inc. was in 20 hedge fund portfolios, compared to 31 funds in the third quarter. YY delivered a 2.94% 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.
