FPA Capital Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 1.26% for the quarter, underperforming its benchmark, the Russell 2500 Index which returned 5.88% in the same quarter. You should check out FPA Capital Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, FPA Capital Fund highlighted a few stocks and NCR Corp (NYSE:NCR) is one of them. NCR Corp (NYSE:NCR) is a software company. In the last one year, NCR Corp (NYSE:NCR) stock gained 9.8% and on January 6th it had a closing price of $38.17. Here is what FPA Capital Fund said:
“NCR was the Fund’s best performer for the quarter. The company sells ATM, POS (point-of-sale) and selfcheckout hardware, software and services. It is in the process of shifting further away from its historical hardware focus to higher margin recurring software-as-a-service products. We believe the company’s stock declined disproportionately during the pandemic partly due to relatively elevated leverage and the impact of the pandemic on its customer base. We believe the leverage is sustainable due to an increasing level of recurring revenues. While some of its customers experienced greater impact from COVID-19, the pandemic created opportunities with other customers.”
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In Q3 2020, the number of bullish hedge fund positions on NCR Corp (NYSE:NCR) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that NCR Corp (NYSE:NCR) isn’t ranked among 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
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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.
