Tao Value recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 7.08% for the quarter, underperforming its benchmark, the MSCI All Country World Index (ACWI) which returned 8.41% in the same quarter. You should check out Tao Value’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the said letter, Tao Value highlighted a few stocks and Pinduoduo Inc. (NASDAQ:PDD) is one of them. Pinduoduo Inc. (NASDAQ:PDD) engages in the development and management of an e-commerce platform. Year-to-date, Pinduoduo Inc. (NASDAQ:PDD) stock gained 134.8% and on October 27th it had a closing price of $90.31. Here is what Tao Value said:
“Pinduoduo (ticker: PDD) dragged 93 bps this quarter. Investors had high expectation on Pinduoduo coming into this quarter, yet the reported Q2 GMV & revenue fell short of such hype. The stock dropped 14% on the earnings day alone. On business side, management indicated its strategic shift to develop technology solutions for the vast, yet under-digitalized agriculture value chain in China. I think it is a difficult but meaningful problem to tackle.”
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In June, we published an article revealing Tao Value’s bullish investment thesis on Pinduoduo Inc. (NASDAQ:PDD) stock in its Q4 2019 investor letter. This suggests that the investment firm has been bullish for a long time on Pinduoduo Inc. (NASDAQ:PDD).
In Q2 2020, the number of bullish hedge fund positions on Pinduoduo Inc. (NASDAQ:PDD) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Pinduoduo’s growth potential. Our calculations showed that Pinduoduo Inc. (NASDAQ:PDD) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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.
