FPA Capital Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 1.26% for the quarter, underperforming its benchmark, the Russell 2500 Index which returned 5.88% in the same quarter. You should check out FPA Capital Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, FPA Capital Fund highlighted a few stocks and Agco Corp (NYSE:AGCO) is one of them. Agco Corp (NYSE:AGCO) is an agricultural machinery manufacturer. In the last one year, Agco Corp (NYSE:AGCO) stock gained 45% and on January 6th it had a closing price of $109.92. Here is what FPA Capital Fund said:
“AGCO was the Fund’s second best performer during the quarter. The company produces agricultural equipment. This market is cyclical and the last agricultural equipment boom occurred in 2013/2014. The type of equipment they sell is typically replaced on a 7-year cycle, creating a tailwind for the company for 2020/2021. The stock appreciated in the quarter on indications that the agricultural equipment market is improving.”
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Last month, we published an article revealing that Agco Corp (NYSE:AGCO) was one of the top 10 agriculture stocks to buy now. The company posted a strong third-quarter result, with both EPS of $2.09 and revenue of $2.50 billion beating the estimates by $1.09 and $360 million respectively.
In Q3 2020, the number of bullish hedge fund positions on Agco Corp (NYSE:AGCO) stock increased by about 48% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Agco’s growth potential. Our calculations showed that Agco Corp (NYSE:AGCO) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. 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. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
