Rhizome Partners, a long-term capital investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 18.2% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.2% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Rhizome Partners, in their Q4 2020 Investor Letter, said that INDUS Realty Trust, Inc. (NASDAQ: INDT) continues to execute well fundamentally speaking. INDUS Realty Trust, Inc. is a real estate business that currently has a $360 million market cap. For the past 3 months, INDT delivered a 7.23% return and settled at $63.78 per share at the closing of February 19th.
Here is what Rhizome Partners has to say about INDUS Realty Trust, Inc. in their Q4 2020 investor letter:
“INDUS Realty Trust (formerly known as Griffin Industrial Realty) continues to execute well fundamentally and on the investor relationship front. The Company should complete its REIT conversion by Q1 2021. We will receive roughly $2 of dividends as part of the REIT conversion with about $0.60 of that in cash and the remainder in stock. The improvement in investor communication has been amazing. INDUS looks, feels, and talks like a billion-dollar public REIT today. Given management’s continuous positive surprises and their recent success in getting the company to trade above NAV, we will hold the shares and see if the company can take advantage of the low cost of capital to grow the business. INDUS is a great example of why our patient investor base is a structural advantage to Rhizome Partners. INDUS executed admirably from 2017-2019 and yet shares were up barely 15%. Within a couple months, our IRR in INDUS jumped from low single-digits to about 23%. This is a common characteristic of value investing. A company can trade range bound for a long period and the returns can occur “violently” in a few weeks when it does work. Again, we thank our partners for your trust in our process.”
Billion Photos/Shutterstock.com
Last November, we published an article telling that INDUS Realty Trust, Inc. (NASDAQ: INDT), formerly Griffin Industrial Realty, was in 4 hedge fund portfolios, its all time high statistics. INDT delivered a decent 46.96% return in the past 12 months.
Our calculations show that INDUS Realty Trust, Inc. (NASDAQ: INDT) 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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.