Blue Hawk Investment Group, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 7.48% was recorded by the fund for the Q4 of 2020, below its S&P 500 benchmark that delivered an 11.69% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Blue Hawk Investment Group, in their Q4 2020 Investor Letter, said that Match Group, Inc. (NASDAQ: MTCH) was one of the top contributors for their long book. Match Group, Inc. is an internet and technology company that currently has a $43 billion market cap. For the past 3 months, MTCH delivered a decent 18.22% return and settled at $159.82 per share at the closing of February 5th.
Here is what Blue Hawk Investment Group has to say about Match Group, Inc. in their investor letter:
“Match Group, our largest holding coming into 2020, had another great year with the stock rising 80% and contributing over 1,000 bps to performance. We discussed at length in previous letters how the spin-off from IAC would be a great catalyst for the stock, and this played out nicely. Looking forward, the pandemic has been a significant positive for the company. The closing of restaurants and bars has forced dating online, accelerating the adoption curve and pulling forward demand by 5 to 10 years. This greatly increases new users at the top of funnel, both significantly increasing potential paying customers and growing Match’s already dominant network effects. This only increases our conviction in the company going forward, and we think the company remains significantly undervalued today. We originally started buying the stock December 2017 at $26, a 5x at today’s prices.”
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In January, we published an article of ShawSpring Partners’ bullish investment thesis on Match Group, Inc. (NASDAQ: MTCH). In our recent data, the company was in 61 hedge fund portfolios, its all time high statistics. MTCH delivered a 7.13% return YTD.
Our calculations show that Match Group, Inc. (NASDAQ: MTCH) does not belong in our list of the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
