Miller Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 47.02% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.54% in the same quarter. You should check out Miller 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, Miller Value Partners highlighted a few stocks and Workday Inc. (NASDAQ:WDAY) is one of them. Workday Inc. (NASDAQ:WDAY) is a software company. Year-to-date, Workday Inc. (NASDAQ:WDAY) stock gained 9.9% and on July 24th it had a closing price of $182.78. Here is what Miller Value Partners’ said:
“Workday is one of the “software as a service” (SAAS) leaders. We looked at it last year as we did work to understand the space. At the time, we didn’t think it offered enough upside, but in the market selloff, it went from $200 to $107. While we didn’t catch it at the lows, we bought it in the $150s where we thought it still offered 50% upside. For a name this kind of market loves, we thought this was quite attractive. Many of its peers had already recovered all of their lost ground but the market was worried about near-term weakness from customers pushing out tech projects. This created a great buying opportunity for us. Workday leads human resource management cloud solutions and is nicely growing its newer financial services offering. It has a sizeable total addressable market, especially relative to its current market cap and revenues. At 9x EV/Revs and 40x EV/EBITDA on next year’s numbers, it’s not cheap on the surface, but we think it’s reasonably priced for a leader with good growth prospects that should be able to compound capital for a long time.”
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Our calculations showed that Workday Inc. (NASDAQ:WDAY) 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. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so we are checking out this under-the-radar lithium stock. 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. 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.
