Distillate Capital recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Distillate Capital’s U.S. Fundamental Stability & Value (U.S. FSV) strategy’s year-to-date decline of 1.19% through Q2 2020, is ahead of the comparable drop of 3.08% for the S&P 500 and 15.1 percentage points above the -16.3% return for the iShares Russell 1000 Value ETF. You should check out Distillate Capital’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, Distillate Capital highlighted a few stocks and International Business Machines Corp (NYSE:IBM) is one of them. International Business Machines Corp (NYSE:IBM) is a technology company. Year-to-date, International Business Machines Corp (NYSE:IBM) stock lost 7.6% and on July 15th it had a closing price of $123.00. Here is what Distillate Capital said:
“AT&T and IBM exited the portfolio as they no longer met the quality criteria for inclusion with AT&T exceeding the debt limit and IBM falling out due to deteriorating long-term fundamental stability.”
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In Q1 2020, the number of bullish hedge fund positions on International Business Machines Corp (NYSE:IBM) stock decreased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with IBM’s downside potential. Our calculations showed that International Business Machines Corp (NYSE:IBM) 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. For example, on one site we found out that NBA champion Isiah Thomas is now the CEO of this cannabis company. The same site also talks about a snack manufacturer that’s growing at 30% annually. 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. 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 if you have any good ideas send us an email. 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.
