American Tower (AMT) Has Risen 19% in Last One Year, Outperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Silver Ring Value Partners top stock picks. Silver Ring Value Partners, an investment management firm, is bullish on American Tower Corp (NYSE:AMT) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on American Tower Corp (NYSE:AMT) stock. American Tower Corp (NYSE:AMT) is a real estate investment trust company.

On July 15, 2019, Silver Ring Value Partners had released its Q2 2019 investor letter. The investment firm said it trimmed its position in American Tower Corp (NYSE:AMT) stock in Q2 2019. American Tower Corp (NYSE:AMT) stock has posted a return of 18.7% in the trailing one year period, outperforming the S&P 500 Index which returned 13.7% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, American Tower Corp (NYSE:AMT) stock has risen by 14.3%.

In Q2 2019 investor letter, Silver Ring Value Partners said the fund posted a return of 5.6% in the last 12 months, underperforming fund’s benchmark the Russell 3000 Index which returned 9.0% in the same period. Let’s take a look at comments made by Silver Ring Value Partners about American Tower Corp (NYSE:AMT) stock in the Q2 2019 investor letter.

“After 3 consecutive quarters of results that were moderately better than my base case assumptions, I re-assessed to company’s value as per my process. The result was to increase the base case value estimate from ~ $200 to $212. During the quarter the stock reached $212, and I further reduced our investment by eliminating the equity portion of the position. What remains is the call option component. Recall that my sell process for businesses that I judge to be Excellent, of which American Tower certainly is one, is to sell a third at 95% of base case value, another third at 100% of base case value and the remainder at 105% of value. I am following this process and intend to eliminate the remainder of the position if the stock exceeds 105% of base case value.

American Tower is an excellent business managed by an excellent management team. However, there is a price at which any business no longer offers attractive prospective returns as an investment but instead caries disproportionate risk of permanent capital loss. Owning a company irrespective of the relationship between price and value is not compatible with a value investing approach.”


In Q2 2020, the number of bullish hedge fund positions on American Tower Corp (NYSE:AMT) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with American Tower’s growth potential. Our calculations showed that American Tower Corp (NYSE:AMT) 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

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Disclosure: None. This article is originally published at Insider Monkey.