Miller Value Partners recently released its Q1 2021 Investor Letter, a copy of which you can download here. The Miller Opportunity Trust posted solid gains, with Class I up 16.67%, outperforming its benchmark, the S&P 500 Index which returned 6.17% in the same quarter. 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 Genworth Financial Inc (NYSE:GNW) is one of them. Genworth Financial Inc (NYSE:GNW) is an insurance company. In the last three months, Genworth Financial Inc (NYSE:GNW) stock gained 39%. Here is what the fund said:
“Genworth Financial (GNW) fell 26% in the quarter following a number of continued deal delays with the planned acquisition by China Oceanwide culminating in the announcement of the termination of the deal in early April. In early January, the company announced that they were focused on contingency plans and would not extend the merger end date beyond the 12/31/20 expiration. At that time, the company announced their plan for a partial IPO of its US mortgage insurance subsidiary, which will help them to meet upcoming debt maturities. The company announced the sale of its remaining 214M share interest in its publicly traded Australian subsidiary for A$2.28 per share. The company used the proceeds to repay $247M of it $450M promissory note to AXA leaving net proceeds of $123M to the company.”
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Miller Value Partners has been a long time Genworth Financial Inc (NYSE:GNW) bull. In August 2020, we shared Miller Value Partners GNW’s thesis in this article.
In Q4 2020, the number of bullish hedge fund positions on Genworth Financial Inc (NYSE:GNW) stock decreased by about 5% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in GNW’s growth potential. Our calculations showed that Genworth Financial Inc (NYSE:GNW) 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.
