Wedgewood Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The Fund returned 12.2% for the fourth quarter of 2020. Meanwhile, the benchmark S&P 500 Index and the Russell 1000 Growth Index gained 12.2% and 11.4%, respectively. You should check out Wedgewood 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, Wedgewood Partners highlighted a few stocks and Starbucks Corp (NASDAQ:SBUX) is one of them. Starbucks Corp (NASDAQ:SBUX) is a multinational chain of coffeehouses and roastery reserves. In the last three months, Starbucks Corp (NASDAQ:SBUX) stock gained 14.6% and on January 14th it had a closing price of $101.82. Here is what Wedgewood Partners said:
“Starbucks’ sales trends improved substantially relative to the second calendar quarter, led by markets that were further along the post-COVID-19 reopening path, particularly mainland China. While the Company has experienced a challenging year due to the effects of the pandemic, Starbucks has quickly adapted and made investments that should move it into a better competitive position as society returns to normal. For example, it has ramped up opening more stores with drive-through and pick-up capabilities, in addition to continued digital and loyalty program expansions. We also think the Company has the opportunity to drive higher margins over the next several years as the growth rate of its store base inevitably matures.”
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In December 2020, we published an article revealing that Starbucks Corp (NASDAQ:SBUX) was one of the top 5 restaurant stocks to buy now.
In Q3 2020, the number of bullish hedge fund positions on Starbucks Corp (NASDAQ:SBUX) stock increased by about 22% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Starbucks’ growth potential. Our calculations showed that Starbucks Corp (NASDAQ:SBUX) 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.
