Ariel Investments, an investment management firm, published its “Ariel Fund”, “Ariel Appreciation Fund”, “Ariel Focus Fund”, “Ariel International Fund”, and “Ariel Global Fund” first-quarter 2021 investor letter – a copy of which can be downloaded here. A return of 19.50% was recorded by Ariel Fund for the first quarter of 2021, 15.65% by Ariel Appreciation Fund, 16.48% by Ariel Focus Fund, 0.14% by Ariel International Fund, and 3.47% by Ariel Global Fund for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Ariel Investments, in its Q1 2021 investor letter, mentioned Oracle Corporation (NYSE: ORCL), and shared their insights on the company. Oracle Corporation is a Austin, Texas-based computer software company that currently has a $227 billion market capitalization. Since the beginning of the year, ORCL delivered a 21.72% return, extending its 12-month returns to 46.44%. As of May 28, 2021, the stock closed at $78.74 per share.
Here is what Ariel Investments has to say about Oracle Corporation in its Q1 2021 investor letter:
“A temporary factor might be a downturn in the high-yield bond market driving up LBO financing costs for the decline in 2021 GAAP revenue for Oracle Corporation (ORCL) due to a change in accounting methods. In all these examples, stock prices were driven well-below our calculations of intrinsic value. We invested in each company with good outcomes. Later, we will offer instances when this strategy is not successful.”
Our calculations show that Oracle Corporation (NYSE: ORCL) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Oracle Corporation was in 52 hedge fund portfolios. ORCL delivered a 22.06% 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.
