Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 22.75% for the quarter, outperforming its benchmark, the S&P 500 Index which returned 12.15% in the same quarter. You should check out Longleaf Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Park Hotels & Resorts Inc. (NYSE:PK) is one of them. Park Hotels & Resorts Inc. (NYSE:PK) is a REIT company. In the last three months, Park Hotels & Resorts Inc. (NYSE:PK) stock gained 27% and on March 31st it had a closing price of $21.58. Here is what the fund said:
“Park Hotels and Resorts (-69%, -3.72%; –, –), an owner of large convention and resort properties, was the top detractor for the year. Park saw its occupancy levels hit unprecedented lows in 1Q due to travel reduction and conference cancellations as a result of COVID. We sold the company in late 1Q, early 2Q, as our long-term appraisal for the business was permanently impaired. Park Hotels’ 100%-owned model, as well as its focus on conferences and group meetings and trophy assets in hard-hit Hawaii, which we had viewed to be key competitive advantages within our original case, became extra-difficult places to be in the current environment. We sold the company and effectively swapped into Hyatt’s better mix of fees and trophy owned assets. The majority of Hyatt’s value comes from capital-light franchise fees, which require fewer expenses to maintain, particularly during this year of industry crisis. We preferred the stability and balance sheet strength of Hyatt to Park at the height of the COVID uncertainty. Both Hyatt’s business and stock price have performed well since we made this swap.”
Credit: Park Hotels & Resorts
In Q3 2020, the number of bullish hedge fund positions on Park Hotels & Resorts Inc. (NYSE:PK) stock decreased by about 19% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in PK’s growth potential. Our calculations showed that Park Hotels & Resorts Inc. (NYSE:PK) 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.
