Amazon (AMZN) Has Risen 82% in Last One Year, Outperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of VGI Partners top stock picks. VGI Partners, an investment management firm, is bullish on Amazon.Com Inc (NASDAQ:AMZN) stock. In its FY 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Amazon.Com Inc (NASDAQ:AMZN) stock. Amazon.Com Inc (NASDAQ:AMZN) is a technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

On July 30, 2019, VGI Partners had released its FY 2019 investor letter. Amazon.Com Inc (NASDAQ:AMZN) stock has posted a return of 81.6% in the trailing one year period, outperforming the S&P 500 Index which returned 12.5% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Amazon.Com Inc (NASDAQ:AMZN) stock has risen by 70.6%.

In its FY 2019 investor letter, the firm reported that VGI Partners Global Investments Limited generated a 10.2% net return. Let’s take a look at comments made by VGI Partners about Amazon.Com Inc (NASDAQ:AMZN) stock in the Q2 2019 investor letter.

“ (NASDAQ: AMZN) contributed +1.5% to performance for the twelve months to 30 June 2019, with the share price increasing 11.4% over the course of the year. We believe that Amazon has built a non-replicable global logistics network, providing it with a very wide and expanding economic moat in the rapidly growing online retail space. Incredibly, Amazon has built this business over the past twenty five years without raising material equity or net debt. This shows us that Amazon has been able to fund its growth through a highly cash generative core business. We remain confident that Amazon’s retail and logistics business will enjoy many years of impressive revenue growth and margin expansion.

In addition, Amazon is the leading global cloud computing provider through Amazon Web Services (AWS). This fast-growing market was effectively founded by Amazon, and as a result AWS benefits from significant first-mover and scale advantages. Amazon is also rapidly growing its advertising business, another additional source of high-margin revenues.

Amazon is a core position for us and while we do expect there to be significant share price volatility from time to time, as we have seen at times in the past, we expect that over the long-term we will continue to generate strong returns on our investment.”

Pixabay/ Public Domain

In Q2 2020, the number of bullish hedge fund positions on Amazon.Com Inc (NASDAQ:AMZN) stock decreased by about 1% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Amazon’s growth potential. Our calculations showed that Amazon.Com Inc (NASDAQ:AMZN) is ranked #1 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. 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. 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.