L1 Capital International Fund released its Q3 2020 Investor Letter, a copy of which you can download here. The Fund posted a return of 5.1% for the quarter, outperforming the benchmark Index which returned 3.7% in the same quarter. You should check out L1 Capital International 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, L1 Capital International Fund highlighted a few stocks and Amazon.com Inc (NASDAQ:AMZN) is one of them. Amazon.com Inc (NASDAQ:AMZN) is an e-commerce company. In the last one year, Amazon.com Inc (NASDAQ:AMZN) stock gained 67.9% and on January 7th it had a closing price of $3,162.16. Here is what L1 Capital International Fund said:
“Several investments in the technology sector were trimmed on valuation grounds with the proceeds used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe the current share price under‑appreciates:
– The consistency and longevity of Amazon’s growth potential in its key businesses;
– The importance of additional revenue streams such as advertising which are high margin and growing rapidly; and
– The strengthening barriers to competition and competitive advantages arising from Amazon’s stepped‑up investment in logistics and other infrastructure.”
25 best things to buy on Amazon under $20 (Photo credit: Pixabay)
Last month, we published an article revealing that Amazon.com Inc (NASDAQ:AMZN) was one of the top 15 online shopping websites in the world in 2020.
In Q3 2020, the number of bullish hedge fund positions on Amazon.com Inc (NASDAQ:AMZN) stock increased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Amazon’s growth potential. Our calculations showed that Amazon.com Inc (NASDAQ:AMZN) is ranked #13 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.
