Heartland Advisors, an investment management firm, published its “Heartland Mid Cap Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 15.81% was delivered by the fund’s institutional class shares for the Q1 of 2021, outperforming its Russell Midcap® Value benchmark that delivered a 13.05% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Heartland Mid Cap Value Fund, in its Q1 2021 investor letter, mentioned Reinsurance Group of America, Incorporated (NYSE: RGA), and shared their insights on the company. Reinsurance Group of America, Incorporated is a Chesterfield, Missouri-based reinsurance company that currently has an $8.6 billion market capitalization. Since the beginning of the year, RGA delivered a 10.35% return, extending its 12-month gains to 49.68%. As of May 13, 2021, the stock closed at $127.89 per share.
Here is what Heartland Mid Cap Value Fund has to say about Reinsurance Group of America, Incorporated in its Q1 2021 investor letter:
“Financially fit. A steepening yield curve during the period was welcome news for bank stocks and helped drive double-digit gains for the Financials sector. Our holdings in the space outpaced the benchmark average; however, we have sought opportunities beyond the banking industry. Longtime holding Reinsurance Group of America, Inc. (RGA) is an example of the type of differentiated business we find attractive in the sector.
Reinsurance Group is the largest pureplay life reinsurance company in the world. Shares of the company were up for the period as concerns over the underwriting exposure posed by mortality rates tied to COVID-19 have subsided and the company has remained profitable throughout the pandemic. Additionally, liabilities tied to a block of policies underwritten during a five-year period beginning in the late 1990s have been more manageable than anticipated.
As the shadow of COVID continues to lift, Reinsurance Group should be well positioned to make greater inroads into the market in Asia where it is already the number-two player. Additionally, the growing need for governments and businesses to offset pension liability risks could be a boon for reinsurers like RGA.
Despite its improving liability profile and strong balance sheet, Reinsurance trades at less than book value. We believe at current levels the company offers an attractive risk/reward profile. “
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Our calculations show that Reinsurance Group of America, Incorporated (NYSE: RGA) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Reinsurance Group of America, Incorporated was in 19 hedge fund portfolios, compared to 31 funds in the third quarter. RGA delivered a 13.47% return in the past 3 months.
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.
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Disclosure: None. This article is originally published at Insider Monkey.
