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 Qurate Retail Inc. (NASDAQ:QRTEA) is one of them. Qurate Retail Inc. (NASDAQ:QRTEA) provides e-commerce services. In the last three months, Qurate Retail Inc. (NASDAQ:QRTEA) stock gained 62.3% and on January 19th it had a closing price of $11.72. Here is what Silver Ring Value Partners’ said:
“Business Vision in 5 Years: The company continues to benefit from the trend towards shopping from home. This allows the business to gain new cohorts of loyal repeat buyers. As traditional retailers struggle to fully recover from the dual pressures of growth in e-commerce and the COVID pandemic, Qurate benefits by offering a combination of shopping and entertainment to a growing universe of consumers. This leads to the company growing sales and profits not just in 2020/2021 but over the long-term.
What Can Prevent It From Getting There:
• The boost in demand from the COVID lockdowns proves transient, and the company resumes its prior sales declines
• Other companies, such as Amazon, are finally able to replicate some of what Qurate offers to its loyal shoppers, causing an accelerating erosion among that cohort
• Merchandizing mistakes that cause the company to lose relevance with its consumers.”
Yuganov Konstantin/Shutterstock.com
In December 2020, we published an article revealing that Qurate Retail Inc. (NASDAQ:QRTEA) was one of the 15 best e-commerce stocks to buy now.
In Q3 2020, the number of bullish hedge fund positions on Qurate Retail Inc. (NASDAQ:QRTEA) stock decreased by about 5% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in QRTEA’s growth potential. Our calculations showed that Qurate Retail Inc. (NASDAQ:QRTEA) 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.
