Brown Advisory recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Small-Cap Fundamental Value Fund posted a return of 20.59% for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 18.91% in the same quarter. You should check out Brown Advisory’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Brown Advisory highlighted a few stocks and Deluxe Corp (NYSE:DLX) is one of them. Deluxe Corp (NYSE:DLX) is a small business financial services company. Year-to-date, Deluxe Corp (NYSE:DLX) stock lost 58.7% and on July 24th it had a closing price of $20.63. Here is what Brown Advisory said:
“COVID-19 negatively impacted Deluxe’s business, particularly its promotional materials segment, which serves small businesses and was down as much as 45% in April. We sold our investment after COVID-19 impacts made it difficult for us to determine whether the company could execute its strategic plan.”
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In Q1 2020, the number of bullish hedge fund positions on Deluxe Corp (NYSE:DLX) stock decreased by about 48% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Deluxe’s downside potential. Our calculations showed that Deluxe Corp (NYSE:DLX) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we scour multiple sources to uncover the next great investment idea. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so we are checking out this under-the-radar lithium stock. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.
