Palm Valley Capital recently released its Q1 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 3.60% for the quarter, underperforming its benchmark, the S&P Small Cap 600 Index which returned 18.23% in the same quarter. You should check out Palm Valley Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Crawford & Co (NYSE:CRD.B) is one of them. Crawford & Co (NYSE:CRD.B) is the world’s largest independent claims management company. In the last three months, Crawford & Co (NYSE:CRD.B) stock gained 35% and on April 9th it had a closing price of $10.70. Here is what the fund said:
“Crawford & Company finished 2020 with robust results in its claims businesses and improving trends for third-party administration, which is tied to employment levels. Revenue from weather surge events increased 58% over 2019, lifting Crawford’s overall sales by 5% for the year and helping to offset the adverse impact of the pandemic. Management expects to benefit in the first quarter from claims tied to the Texas winter storms. Due to paying down debt and reducing pension obligations, Crawford’s financial position is the strongest it has been in years. Crawford’s stock had not kept pace with the small cap market’s 2020 rally but perked up in January. The shares are currently trading for about 7x normalized EBIT and 12x free cash flow.”
Pixabay/Public Domain
Our calculations showed that Crawford & Co (NYSE:CRD.B) 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.
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 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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.
