Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 22.75% for the quarter, outperforming its benchmark, the S&P 500 Index which returned 12.15% in the same quarter. You should check out Longleaf Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Raytheon Technologies Corp (NYSE:RTX) is one of them. Raytheon Technologies Corp (NYSE:RTX) is an aircraft manufacturing company. In the last three months, Raytheon Technologies Corp (NYSE:RTX) stock gained 8.1% and on March 31st it had a closing price of $77.27. Here is what the fund said:
“Raytheon Technologies (-32%, -1.95%; –, –), the commercial aerospace business that spun out of United Technologies, detracted for the year. We exited the name in the second quarter after it was spun out from UTX, as we believed that the aerospace business was changed for the worse and we already had a superior business in that industry at GE (which went onto be a stronger subsequent performer in the second half of the year). The now more important defense business was not one we were as comfortable with for multiple reasons – especially given social concerns around the missile business and some of its key customers. Additionally, we felt the solid management team did not have enough ways to go on offense.”
Pixabay/Public Domain
Earlier this month, we published an article revealing that Raytheon Technologies Corp (NYSE:RTX) was one of the 10 best industrial dividend stocks for 2021.
In Q4 2020, the number of bullish hedge fund positions on Raytheon Technologies Corp (NYSE:RTX) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in RTX’s growth potential. Our calculations showed that Raytheon Technologies Corp (NYSE:RTX) 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, 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.
