Oakmark Fund recently released its third-quarter investor letter – a copy of which is available for download here. The fund posted a return of 6.2% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Oakmark Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Oakmark Fund’s highlighted a few stocks and CBRE Group Inc. (NYSE:CBRE) is one of them. CBRE Group Inc. (NYSE:CBRE) is a commercial real estate services and investment firm. Year-to-date, CBRE Group Inc. (NYSE:CBRE) stock gained 5.1% and on December 17th it had a closing price of $64.41. Here is what Oakmark Fund’s said:
“CBRE Group is the largest commercial real estate services firm in the U.S. The company has significant scale across its various service lines and geographies, enabling it to consistently invest more than its smaller peers into the research, tools and technology that customers value. This industry-leading value proposition has driven consistent share gains for CBRE in recent years as large clients have been attracted to the company’s differentiated capabilities and the best brokers have been attracted by the steady stream of clients. We expect CBRE to continue to gain market share in this highly fragmented brokerage industry for many years to come while it further transitions away from transaction-driven commissions and toward contractual fee revenues. Outsized fears around work from home have caused the company to sell for less than 9x our estimate of mid-cycle earnings. We think this is a bargain price for this high-quality and well-managed business.”
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In Q2 2020, the number of bullish hedge fund positions on CBRE Group Inc. (NYSE:CBRE) stock decreased by about 12% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in CBRE’s growth potential. Our calculations showed that CBRE Group Inc. (NYSE:CBRE) 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
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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.
