Alphyn Capital Management, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 17.2% was recorded by the fund for the Q4 of 2020, above its S&P 500 benchmark that returned 11.7%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Alphyn Capital Management, in their Q4 2020 Investor Letter said that they maintained their position in IAC/InterActiveCorp (NASDAQ: IAC) and still aims the best for the company. IAC/InterActiveCorp is a media and internet centered holding company that currently has a $18.5 billion market cap. For the past 3 months, IAC delivered a decent 66.74% return and settled at $209.01 per share at the closing of January 27th.
Here is what Alphyn Capital Management has to say about IAC/InterActiveCorp in their investor letter:
“On November 22nd, IAC announced it would look into spinning out Vimeo, its Software-As-A-Service video creation company, on the back of strong revenue growth and robust investor interest. To quote from the IAC shareholder letter “We just tested Vimeo’s ability to access capital with a small private fundraise to bolster Vimeo’s balance sheet and to repay capital to IAC. We entered into agreements today to raise $150 million of equity capital at Vimeo from outside investors at an implied enterprise value of $2.75 billion, a large multiple of current revenue. We don’t normally think in terms of revenue multiples, but we found real appetite among investors who do – we had more interest in Vimeo than the number of shares we were willing to let Vimeo sell.” In other words, IAC will exploit current valuations while the market is willing to pay for it. This has so far been a good example of our defensive approach towards investing software companies from the cover of an undervalued holding company run by intelligent capital allocators.”
Last November 2020, we published an article telling that IAC/InterActiveCorp (NASDAQ: IAC) was in 72 hedge fund portfolios, its all time high statistics. IAC delivered a 10.38% return YTD.
Our calculations show that IAC/InterActiveCorp (NASDAQ: IAC) does not belong in our list of the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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.