Mairs & Power, an investment management firm, published its fourth-quarter 2020 ‘Growth Fund’ Investor Letter – a copy of which can be downloaded here. A return of 13.88% was recorded by the fund in the fourth quarter of 2020, outperforming its S&P 500 TR benchmark that delivered a 12.15% return, but below the Lipper Multi Cap Core Funds index that posted gains of 15.69% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.op 5 holdings to have a peek at their top bets for 2021.
Mairs & Power, in their Q4 2020 investor letter, mentioned Amazon.com, Inc. (NASDAQ: AMZN) and emphasized their views on the company. Amazon.com, Inc. is a Washington-based e-commerce company. It currently has a $1.55 trillion market capitalization. Since the beginning of the year, AMZN is down -5.80%, while its 12-month gains are still up by 68.49%. As of March 9, 2021, the stock closed at $3,062.85 per share.
Here is what Mairs & Power has to say about Amazon.com, Inc. in their Q4 2020 investor letter:
“We did acquire AMZN in the fourth quarter. But not owning it till then cost the Fund in performance relative to the S&P 500 TR Index. We had held off taking a position in Amazon largely due to concerns about the company’s slim margins. But in 2020, we saw its core margins nearly double as more consumers shopped online, which in turn led to greater utilization and route density within Amazon’s delivery network. In addition, Amazon’s advertising business, which represents a small portion of its overall sales, has been growing quickly. Advertising could become a third leg of growth for the company along with e-commerce and Amazon Web Services. In short, Amazon checks all of our boxes — it has a strong management team, great growth prospects, and a strong competitive advantage. And last year, we initiated our position at an intriguing valuation.”
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Our calculations show that Amazon.com, Inc. (NASDAQ: AMZN) ranks 1st in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Amazon.com, Inc. was in 273 hedge fund portfolios, compared to 245 funds in the third quarter. AMZN delivered a -1.29% 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.
