Longleaf Partners Fund, an investment management firm under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 11.74% was delivered by the fund for the Q1 of 2021, slightly below its Russell 2000 benchmark that had a 12.70% gain in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Longleaf Partners Small-Cap Fund, in their Q1 2021 investor letter, mentioned Mattel, Inc. (NASDAQ: MAT) and shared their insights on the company. Mattel, Inc. is a El Segundo, California-based toy manufacturing company that currently has a $7.2 billion market capitalization. Since the beginning of the year, MAT delivered a 19.66% return, extending its 12-month gains to 149.76%. As of April 22, 2021, the stock closed at $20.88 per share.
Here is what Longleaf Partners Small-Cap Fund has to say about Mattel, Inc. in their Q1 2021 investor letter:
“Mattel (14%, 0.87%), the global toy company, also contributed to the Fund’s positive returns. Fourth quarter sales grew 10%, with Barbie once again leading with an impressive 18% growth, American Girl up 9% due to direct-to-consumer strength, Hot Wheels up 12% and Infant/Toddler growing 7%. Margins also improved to increase EBITDA 53% year-over-year (YoY) during the company’s all-important seasonal peak. CEO Ynon Kreiz’s outlook for 2021-23 includes achievable targets of mid-single-digit revenue growth and continuously improving margins. Mattel’s strategically important IP monetization has also developed well with no fewer than 25 media projects in the works. We expect significant contributions from these high-margin IP revenues over the next several years and do not think the market yet gives the company credit for the scale of this opportunity.”
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Our calculations show that Mattel, Inc. (NASDAQ: MAT) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Mattel, Inc. was in 25 hedge fund portfolios, compared to 26 funds in the third quarter. MAT delivered an 13.66% return in the past 3 months.
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.
