FPA Crescent Fund, an investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 18.15% was recorded by the fund’s institutional shares for the Q4 of 2020, above its S&P 500 benchmark that delivered a 12.15% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
FPA Crescent Fund, in their Q4 2020 investor letter, mentioned Howmet Aerospace Inc. (NYSE: HWM) and shared their insights on the company. Howmet Aerospace Inc. is a Pittsburgh, Pennsylvania-based aerospace company that currently has a $13.7 billion market capitalization. Since the beginning of the year, HWM delivered an 11.46% return, extending its 12-month gains to 140.08%. As of April 08, 2021, the stock closed at $31.81 per share.
Here is what FPA Crescent Fund has to say about Howmet Aerospace Inc. in their Q4 2020 investor letter:
“Howmet saw its stock price decline by around two-thirds from their Q1 2020 highs. Howmet’s price increased about three times from its low and ended the year at its all-time high. The value of its necessary and large market share business did not fluctuate as much as its stock price.”
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Our calculations show that Howmet Aerospace Inc. (NYSE: HWM) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Howmet Aerospace Inc. was in 49 hedge fund portfolios, compared to 35 funds in the third quarter. HWM delivered a 13.97% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
