Nelson Capital Management, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. In the letter, the fund discussed their interpretation of the Dot-Com Bubble 2.0, their asset transactions, tax updates, featured equity, and a special topic about the vaccine rollout. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
In their Q4 2020 investor letter, Nelson Capital Management mentioned General Mills, Inc. (NYSE: GIS) and shared their insights on the company. General Mills, Inc. is a Minneapolis, Minnesota-based food company that currently has a $37.2 billion market capitalization. Since the beginning of the year, GIS delivered a 3.61% return, extending its 12-month gains to 11.01%. As of April 01, 2021, the stock closed at $60.92 per share.
Here is what Nelson Capital Management has to say about General Mills, Inc. in their Q4 2020 investor letter:
“We purchased a position in General Mills (tkr: GIS). General Mills is a manufacturer and marketer of branded consumer foods and pet food products sold mainly through retail stores. It has greatly benefited from the “people eating at home” theme during the pandemic. Although this growth driver is likely to persist through 2021, that is not the main reason to own General Mills. The management team has done an excellent job diversifying product lines, and has successfully identified new trends and brought products forth accordingly. Some notable brands and products include Annie’s, Cheerios, Betty Crocker, Blue Buffalo, EPIC, Pillsbury and Yoplait. General Mills has maintained a healthy balance sheet, consistent with industry practice. It is relatively inexpensive with a P/E ratio of 15x (about half that of Hormel) and pays a 3.4% dividend, making it a great core holding within the consumer staples sector.”
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Our calculations show that General Mills, Inc. (NYSE: GIS) 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, General Mills, Inc. was in 39 hedge fund portfolios, compared to 36 funds in the third quarter. GIS delivered a 3.61% 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.
