Wedgewood Partners, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +4.8% was reported by the fund for the Q1 of 2021, outperforming its Russell 1000 Growth benchmark that delivered a 1% return, but below both the S&P 500 and Russell 1000 Value Index that had a 6.2% and 11.3% gains in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Wedgewood Partners, in their Q1 2021 investor letter, mentioned Tractor Supply Company (NASDAQ: TSCO) and shared their insights on the company. Tractor Supply Company is a Brentwood, Tennessee-based retail chain company that currently has a $20.8 billion market capitalization. Since the beginning of the year, TSCO delivered a 27.61% return, extending its 12-month gains to 97.70%. As of April 13, 2021, the stock closed at $178.94 per share.
Here is what Wedgewood Partners has to say about Tractor Supply Company in their Q1 2021 investor letter:
“Tractor Supply Company reported torrid same sales growth of +27%, driven by a doubling of e-commerce sales as the Company’s rural customer base relies on it for an increasing amount of discretionary and nondiscretionary purchases, delivered more conveniently than local, regional, and national competitors. Importantly, Tractor Supply also announced the acquisition of one of its regional competitors, Orscheln Farm and Home. The Company should add significant value to Orscheln’s 167 store base by bringing in basic e-commerce capabilities, adding merchandising optimization, and helping with store modernization. We consider the vast majority of the Company’s competition to be a long, highly fragmented pool of local and regional competitors, like Orscheln, which could represent a significant opportunity for return-accretive acquisitions over the next several years.”
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Our calculations show that Tractor Supply Company (NASDAQ: TSCO) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Tractor Supply Company was in 39 hedge fund portfolios, compared to 48 funds in the third quarter. TSCO delivered a 16.41% 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.
