Silver Ring Value Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 26.6% for the last 12 months (net), outperforming its benchmark, the Russell 3000 Index which returned 20.9% in the same period. You should check out Silver Ring Value 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, Silver Ring Value Partners’ highlighted a few stocks and O-I Glass Inc. (NYSE:OI) is one of them. O-I Glass Inc. (NYSE:OI) is a glass container manufacturing company. In the last three months, O-I Glass Inc. (NYSE:OI) stock gained 17.4% and on January 19th it had a closing price of $12.96. Here is what Silver Ring Value Partners’ said:
“Business Vision in 5 Years: Glass containers have held their share of the market, resulting in the company’s business being moderately larger in U.S. and the EU and substantially larger in Latin America. The company’s MAGMA technology succeeded and allowed the business to grow in a more capital-efficient manner. Revenue growth has allowed margins to expand modestly. The company has resolved its outstanding asbestos issues for a sum consistent with management’s estimates.
What Can Prevent It From Getting There:
• Aluminum takes a large amount of share from glass containers
• The company loses share in the EU due to competitors out-innovating it and the company underinvesting in its business
• Latin American growth slows or reverses due to a prolonged recession
• Asbestos claims are not settled in federal courts or are settled for a very large amount relative to management’s projections.”
Copyright: zinkevych / 123RF Stock Photo
In Q2 2020, the number of bullish hedge fund positions on O-I Glass Inc. (NYSE:OI) stock decreased by about 14% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in OI’s growth potential. Our calculations showed that O-I Glass Inc. (NYSE:OI) 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.
