FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
FAM Funds, in their Q4 2020 Investor Letter said that they acquired a position in Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), and they were able to buy its shares at an attractive valuation. Ollie’s Bargain Outlet Holdings, Inc. is a chain of discount retail stores that currently has a $6.3 billion market cap. For the past 3 months, OLLI delivered a decent 10.07% return and settled at $97.55 per share at the closing of January 28th.
Here is what FAM Funds has to say about Ollie’s Bargain Outlet Holdings, Inc. in their investor letter:
“In early April, we introduced another new idea — Ollie’s Bargain Outlet Holdings (OLLI). OLLI is an off-price retailer that buys unwanted inventory cheaply from manufacturers and retailers (e.g., end of season extras, label changes, or the inventory of failed stores) and then passes those bargains to consumers through hundreds of modest stores. We long admired OLLI and were pleased to finally be able to buy shares at an attractive valuation. While OLLI was initially impacted by less store traffic, they were considered “essential” and had significant financial strength; therefore, we felt confident they could not only survive but return to growth when conditions improved.”
Sensay/Shutterstock.com
Last December 2020, we published an article telling that Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) was in 34 hedge fund portfolios, its all time high statistics. OLLI delivered an outstanding 80.26% return in the past 12 months.
Our calculations show that Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) 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.
