Miller Value Partners, an investment management firm, published its ‘Income Strategy’ fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A net return of 19.17% was recorded by the fund for the Q4 of 2020 which is almost twice as much of its benchmark that returned 6.48%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Miller Value Partners, in their Q4 2020 Investor Letter, said that OneMain Holdings, Inc. (NYSE: OMF) was their top contributor in the fourth quarter of 2020. OneMain Holdings, Inc. is a financial services company that currently has a $7 billion market cap. For the past 3 months, OMF delivered a 34.02% return and settled at $52.75 per share at the closing of February 12th.
Here is what Miller Value Partners has to say about OneMain Holdings, Inc. in their Q4 2020 investor letter:
“OneMain Holdings (OMF) was the top contributor over the quarter, advancing 56.0% after reporting Q3 Earnings Per Share (EPS) of $2.19, well above consensus of $1.26 and the quarterly dividend, which was increased 36% to $0.45/share (3.5% annualized yield and 11.5% Trailing Twelve Month (TTM) yield). Net interest income of $836M beat estimates of $778M, implying a 24.3% asset yield and 18.7% net interest margin. Origination volumes increased 41% sequentially to $2.9Bn on continued strength in digital while end-of-period net receivables were flat at $17.8Bn. Credit quality remains excellent with net charge-offs of 5.2%, the lowest level since 3Q 2015. Management guided to year-end receivables of $18.1Bn, net charge-offs of 5.6% (from 5.8%-6.0%), and net leverage of 4.3x-4.5x.”
Iakov Filimonov/Shutterstock.com
Just recently, we published an article about the 10 best consumer stocks to buy now, and OneMain Holdings, Inc. (NYSE: OMF) is part of it. OMF delivered a 10.10% return in the past 12 months.
Our calculations show that OneMain Holdings, Inc. (NYSE: OMF) does not belong in our list of 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.
