GDS Investments, an investment management firm, published its year-end investor letter – a copy of which can be seen here. In the letter, the fund talked about the negative impact brought about by the pandemic and how it affected the market as a whole. GDS mentioned that their focus will be on companies that can positively absorb the effects of the rising inflation and reduced monetary policy. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.op 5 holdings to have a peek at their top bets for 2021.
GDS Investments, in their Q4 2020 investor letter, mentioned Roku, Inc. (NASDAQ: ROKU) and emphasized their views on the company. Roku, Inc. is a California-based digital video streaming company. It currently has a $45.7 billion market capitalization. Since the beginning of the year, ROKU delivered a 7.39% return, massively extending its 12-month gains to 352.40%. As of March 10, 2021, the stock closed at $356.54 per share.
Here is what GDS Investments has to say about Roku, Inc. in their Q4 2020 investor letter:
“We also continue to have great confidence in Roku, Inc. (NASDAQ: ROKU). In a perfect illustration of a secular trend, fully one-third of U.S. households have eliminated traditional pay TV in favor of digital streaming platforms. As a “cord-cutting” beneficiary, Roku, Inc. recently reported huge revenue (up 73% year-over-year) and, having added 2.9M active accounts in the last quarter, now stands at 46M. Chief Executive Officer Anthony Wood last year described a virtuous cycle for The Roku Channel, stating that the company “promote[s] it, we onboard more content, we get more users, we get more advertisers, then we get more content, we do more promotion, we get bigger titles.” As the company becomes ever more ubiquitous, it will continue to leverage its active accounts to win more content and take stronger positions in negotiations with large content providers. Lastly, Roku, Inc.’s operating system is second-to-none and allows the company to sell to the advertising supply chain valuable targeted marketing opportunities.”
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Our calculations show that Roku, Inc. (NASDAQ: ROKU) 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, Roku, Inc. was in 60 hedge fund portfolios, compared to 59 funds in the third quarter. ROKU delivered a 10.73% 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.
