Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, recently released its Q2 2021 Investor Letter, a copy of which you can download here. The fund added 4.40% in the second quarter, taking year-to-date returns to 23.42%, while the S&P 500 returned 8.55% and 15.25% over the same periods. 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 Q2 2021 Investor Letter, the fund highlighted a few stocks and MGM Resorts International (NYSE:MGM) is one of them. MGM Resorts International (NYSE:MGM) is a hospitality and entertainment company operating destination resorts. In the last three months, MGM Resorts International (NYSE:MGM) stock lost 2%. Here is what the fund said:
“MGM (12%, 0.59%), the casino and online gaming company, was a top contributor as it reported a solid first quarter with Vegas EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) doubling sequentially and Regional EBITDAR actually growing strongly YOY due to exceptional cost control. The second quarter saw clear signs of even more growth with a strong rebound in travel to the company’s US properties. MGM also continued to de-risk its value and balance sheet by selling over $1 billion of fully valued shares of its real estate subsidiary MGM Growth Properties in the quarter. On the first day of July, the company announced a transaction to consolidate and sell the real estate of its CityCenter project at a price that was accretive to our value per share.”
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Earlier this month, we published an article revealing that MGM Resorts International (NYSE:MGM) was one of the 10 best stocks to buy according to Richard Mashaal’s Senvest Management.
In Q1 2021, the number of bullish hedge fund positions on MGM Resorts International (NYSE:MGM) stock increased by about 30% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in MGM’s growth potential. Our calculations showed that MGM Resorts International (NYSE:MGM) 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.
