Anabatic Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of -11.7% in 2020 (net of fees) compared to the S&P 500 Index which returned 16.3% in the same period. You should check out Anabatic Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q4 2020 Investor Letter, Anabatic Fund highlighted a few stocks and Oceanfirst Financial Corp (NASDAQ:OCFC) is one of them. Oceanfirst Financial Corp (NASDAQ:OCFC) is a bank holding company. In the last three months, Oceanfirst Financial Corp (NASDAQ:OCFC) stock gained 15.1% and on January 26th it had a closing price of $19.09. Here is what Anabatic Fund said:
“Our only bank investment as of this writing is OceanFirst (OCFC), and its share of the portfolio is diminished. OCFC returned -24% in 2020 as the preceding list of problems took its toll. That said, the company remained reasonably profitable and performed quite well from an operating perspective. My respect for management is stronger than ever. The communication, procedures, protocols, and execution demonstrated through the pandemic crisis were exemplary, and companies of any size in any industry would have done well to emulate OceanFirst.
The future, unfortunately, could be difficult. OceanFirst’s primary attributes – its sticky, low-cost deposit base and its long-term relationships with customers – are not as valuable when all banks are swimming in new deposits. A prudent, conservative lending culture is also harder to maintain when peers throw caution to the win in a desperate bid to put money to work. More – and more accretive – acquisitions might be coming if sellers adapt to a bleaker outlook, but that won’t solve all the problems. An efficient operation produces lower returns on capital when excess capital and low interest rates weigh down total profitability.
For now, we retain a small holding (approximately 3% of capital), but it is harder to be optimistic now than it was in prior years given the shifting odds. As conditions, prices, and other opportunities develop this investment will be revaluated over the course of 2021.”
In Q3 2020, the number of bullish hedge fund positions on Oceanfirst Financial Corp (NASDAQ:OCFC) stock increased by about 50% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in OCFC’s growth potential. Our calculations showed that Oceanfirst Financial Corp (NASDAQ:OCFC) isn’t ranked among 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
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Disclosure: None. This article is originally published at Insider Monkey.
