Arquitos Capital Partners recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Arquitos Fund posted a return of -19.0% for the quarter (net), outperforming its benchmark, the S&P 500 which returned -19.60% in the same quarter. You should check out Arquitos Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.
In the said letter, Arquitos Capital highlighted a few stocks and MMA Capital Holdings Inc. (NASDAQ:MMAC) is one of them. MMA Capital is a financial services company. Year-to-date, MMA Capital Holdings Inc. (NASDAQ:MMAC) stock lost 28.8% and on June 24th it had a closing price of $22.70. Here is what Arquitos Capital said:
“Looking back to the first quarter, our position in MMA Capital (MMAC) accounted for 10% of the overall decline in our portfolio. MMAC makes up 38% of the portfolio. It ended the quarter trading at $24.73.
The company reported outstanding results just a few weeks before the end of the quarter. Book value stood at $48.43 per share. There was a dramatic increase in book value due to the recognition of a deferred tax asset. Adjusting for that asset, book value was still $38.49 per share. It remains to be seen how much the economic shutdown will affect their primary solar lending business, but it certainly won’t destroy their book value by the 36% discount from this adjusted book value being applied by the markets.
MMAC had a huge pile of cash prior to the economic shutdown—more than $60 million. They also had a new $120 million credit facility. This is a company that can thrive during this period of stress.”
Our calculations showed that MMA Capital Holdings Inc. (NASDAQ:MMAC) 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 leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. 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.
