Miller Value Partners recently released its Q1 2021 Investor Letter, a copy of which you can download here. In the first quarter, the Miller Income Fund’s I-shares returned 17.36% versus 0.90% for the ICE BofA Merrill Lynch High Yield Index. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Chico’s FAS Inc. (NYSE:CHS) is one of them. Chico’s FAS Inc. (NYSE:CHS) is a clothing retail company. In the last three months, Chico’s FAS Inc. (NYSE:CHS) stock gained 64%. Here is what the fund said:
“Chico’s FAS (CHS) rose 108.2% during the quarter alongside “epicenter” stocks with the passing of the $1.9 trillion stimulus bill, as well as President Biden’s goal of ensuring vaccine availability for all US adults by May 1st and a “return to normalcy” by July 4th. Chico’s reported Q4 net sales of $386.2M, down 26.7% Y/Y (+10% Q/Q) driven by a 24.9% drop in comps and 39 permanent store closures, partially offset by +20% growth in digital sales. Soma continues to top expectations with revenue of $119.1M, comps of +15.2%, and digital growth of +68%. While management did not provide formal 2021 guidance, they expect consolidated sales trend improvements in the second half of 2021 in conjunction with the vaccine rollout and significant margin improvement driven by a 30% reduction in planned inventories and second round of lease negotiations. Additionally, the company anticipates closing 13%-16% of the remaining store fleet over the next three years with the vast majority coming from mall-based Chico’s and White House Black Market.”
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Miller Value Partners has been a long time Chico’s FAS Inc. (NYSE:CHS) bull. In November 2020, we shared Miller Value Partners’ bullish CHS’s thesis in this article.
Our calculations showed that Chico’s FAS Inc. (NYSE:CHS) isn’t ranked among the 30 most popular stocks among hedge funds.
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.
