Nomadic Value Partners recently released its Q2 2021 Investor Letter, a copy of which you can download here. In the second quarter, the fund posted returns of 9.6% compared to 8.6% total return for the S&P 500 Index. You should check out Nomadic Value’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Equity Commonwealth (NYSE:EQC) is one of them. Equity Commonwealth (NYSE:EQC) is a real estate investment trust company. In the last three months, Equity Commonwealth (NYSE:EQC) stock lost 1%. Here is what the fund said:
“In early May, Equity Commonwealth (EQC) announced a transaction to buy Monmouth REIT (MNR) in an all-stock transaction. We later sold our shares in late June. MNR is an industrial warehouse REIT focused on Grade A tenants, with 55% of their portfolio leased to FedEx. The strategy sold to the street is that EQC can leverage MNR’s portfolio to deploy their $3Bn of unencumbered cash into other industrial properties – building a unique, high-grade industrial REIT from scratch. I liked the idea originally, but after talking to folks in the industrial RE segment and modeling the likely financial outcomes, I could not see this opportunity achieving our return hurdle. Fortunately, we bought EQC at a price conservative to the core office assets they already hold and were able to sell the shares with a very small gain over a six-month hold.”
robert cicchetti / Shutterstock.com
In January, we published an article revealing Nomadic Value Partners bullish investment thesis on Equity Commonwealth (NYSE:EQC) stock.
In Q1 2021, the number of bullish hedge fund positions on Equity Commonwealth (NYSE:EQC) stock increased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in EQC’s growth potential. Our calculations showed that Equity Commonwealth (NYSE:EQC) isn’t ranked among the 30 most popular stocks among hedge funds.
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.
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 best EV stocks 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 homepage.
Disclosure: None. This article is originally published at Insider Monkey.
