Heartland Mid Cap Value Fund recently released its third-quarter investor letter – a copy of which is available for download here. The fund posted a return of 3.1% for the quarter, underperforming its benchmark, the Russell Midcap Value Index which returned 6.4% in the same quarter. You should check out Heartland’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, Heartland Advisors highlighted a few stocks and Hilton Worldwide Holdings Inc. (NYSE:HLT) is one of them. Hilton Worldwide Holdings Inc. (NYSE:HLT) is a hospitality company. Year-to-date, Hilton Worldwide Holdings Inc. (NYSE:HLT) stock lost 5.7% and on December 18th it had a closing price of $104.61. Here is what Heartland Advisors said:
“A room with a view. As stocks sold off earlier this year in response to the global pandemic, the Team acted opportunistically by adding industry-leading businesses that were trading at significant discounts relative to their intrinsic value. Hilton Worldwide Holdings Inc. (HLT) is an example of this approach.
Hilton, a global hospitality franchise and property manager with roughly one million hotel rooms under the company’s operational umbrella, owns popular hotel brands including the namesake Hilton franchise, DoubleTree, Hampton Inn, and Embassy Suites. Hotel owners enter into multi-year franchise agreements with Hilton in return for access to Hilton’s property management expertise, booking software, and Hilton Honors loyalty members.
Shares of the company sold off earlier this year as travel restrictions in response to COVID-19 led to a dramatic downturn in room bookings. Hilton was particularly impacted because of the company’s focus on the mid and upper- price point and business travel customers. We viewed the slump in share price as an overreaction to a temporary setback for demand and initiated a position in early summer. Since then, revenue per available room night, an industry metric that measures room rate and occupancy, has improved meaningfully and shares rose double-digits for the period.
We believe Hilton should be a direct beneficiary of rising travel demand going forward, and that the company is in the early innings of a global expansion that could serve as a catalyst for growth in the coming years.”
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In Q3 2020, the number of bullish hedge fund positions on Hilton Worldwide Holdings Inc. (NYSE:HLT) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Hilton’s growth potential. Our calculations showed that Hilton Worldwide Holdings Inc. (NYSE:HLT) 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
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Disclosure: None. This article is originally published at Insider Monkey.
