Vulcan Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Large Cap Composite fund posted a return of 24.5% for the second quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.5% in the same quarter. You should check out Vulcan Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Vulcan Value Partners’ highlighted a few stocks and Timken Co (NYSE:TKR) is one of them. Timken Co (NYSE:TKR) is a manufacturer of bearings and related components and assemblies. Year-to-date, Timken Co (NYSE:TKR) stock lost 2.3% and on August 28th it had a closing price of $55.02. Here is what Vulcan Value Partners’ said:
“Timken Co. is a manufacturer of engineered bearings used in rotating motion equipment and related power transmission products. Its products are mission critical, have a high cost of failure, and only a relatively small cost to the customer. The company was spun out of Timken Steel in 2014, and since that time, the business has improved through higher growth, higher margins, better positioning within end markets, and improved free cash flow. Its scale along with its engineering abilities and technical expertise create high barriers to entry for competitors. Timken’s management team has significant ownership of the company, solid management incentives aligned with shareholder interests, and are intelligent capital allocators. We have owned Timken in the past, and it was a successful investment for us.”
In Q1 2020, the number of bullish hedge fund positions on Timken Co (NYSE:TKR) stock decreased by about 25% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Timken’s growth potential. Our calculations showed that Timken Co (NYSE:TKR) 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. 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 precious metals prices. So, we are checking out this junior gold mining stock.. We go through lists like the 10 most profitable companies in America 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. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. 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.
