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 Sea Ltd (NYSE:SE) is one of them. Sea Ltd (NYSE:SE) is an internet company. Year-to-date, Sea Ltd (NYSE:SE) stock gained 305.9% and on October 28th it had a closing price of $163.24. Here is what Tao Value said:
“Sea Ltd (ticker: SE) Based on reported Q2 numbers, Sea did well across the board, beating already high expectation in all 3 business segments. It is evolving into a super app for ASEAN region leveraging its leading positions in all 3 mega trends: gaming, e-commerce & fintech, basically a combined Alibaba & Tencent of ASEAN. Given the strong price reaction, I decided to trim slightly to control position size.”
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In June, we published an article revealing Tao Value’s bullish investment thesis on Sea Ltd (NYSE:SE) stock in its Q4 2019 investor letter. This suggests that the investment firm has been bullish for a long time on Sea Ltd (NYSE:SE).
In Q2 2020, the number of bullish hedge fund positions on Sea Ltd (NYSE:SE) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Sea’s growth potential. Our calculations showed that Sea Ltd (NYSE:SE) 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
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 enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.
