Miller Value Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. In the third quarter, the Miller Income Strategy fund returned 7.89% versus 4.71% for the ICE BofA Merrill Lynch High Yield Index. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the said letter, Miller Value Partners highlighted a few stocks and Chico’s FAS Inc. (NYSE:CHS) is one of them. Chico’s FAS Inc. (NYSE:CHS) is a clothing retail company. Year-to-date, Chico’s FAS Inc. (NYSE:CHS) stock lost 70.9% and on November 2nd it had a closing price of $1.11. Here is what Miller Value Partners said:
“Chico’s FAS (CHS) was the top detractor over the quarter, falling -29.5% despite generating positive FCF of $7M in Q2, a $112M sequential improvement in a very challenging operating environment. Revenue of $306.2M was below consensus of $332.7M but +9.2% quarter-over-quarter (Q/Q) on the backs of strong digital performance and store re-openings. Digital sales in the apparel group and intimates each grew double digits with Soma surging 70% Y/Y. Gross margin of 14.6% improved 18% sequentially while SG&A expense declined $63.7M driven by ongoing expense reduction initiatives. Management announced a strategic real estate review whereby each store’s cash flow and profitability will be evaluated in an effort to optimize the fleet.”
Africa Studio/Shutterstock.com
In Q1 2020, the number of bullish hedge fund positions on Chico’s FAS Inc. (NYSE:CHS) stock increased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in CHS’s growth potential. Our calculations showed that Chico’s FAS Inc. (NYSE:CHS) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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.
