Avory & Co: “Coming Out of Covid, Capri (CPRI) is a Leaner Business”

Avory & C0, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. In the letter, the firm talked about the key themes they formulated for 2021 and the coming years, through automation, interactive entertainment, digital work, commerce evolution, financial revolution, and a lot more. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Avory & Co, in their Q4 2020 Investor Letter said that they have a positive outlook on Capri Holdings Limited (NYSE: CPRI) because of the commendable efforts of its management that was manifested and made the company survive the hard times under the pandemic, and that this type of execution could put the company ahead and kicking for a lot more years to come. Capri Holdings Limited is a global fashion holding company that currently has a $6.3 billion market cap. For the past 3 months, CPRI delivered a huge 87.36% return and settled at $43.22 per share at the closing of January 25th.

Here is what Avory & Co has to say about Capri Holdings Limited in their Investor Letter:

“John Idol, was amongst the most nimble and resilient CEOs in 2020. Capri, as most of the retail sector, faced various challenges; 1) Supply disruptions in their leather goods as a result of the large impact covid had on Italy, 2) Dwindling demand as brick and mortar locations were forced to shut down globally and 3) Debt due in December of 2020. John acted quickly and reduced his cost base through global furloughs, delayed reopenings, turned to social selling and clienteling, was able to refinance all the debt in 2020 and pushed it out multiple years, along with getting their three brands, Jimmy Choo, Versace, and Michael Kors to positive or mid negative single-digit comparable sales by August. Coming out of Covid Capri is a leaner business. Versace is realizing positive sales, and they now expect 2020 to be a profitable year. We believe that this type of management execution can and should totally transform the narrative around this company for many years to come.”

Last September 2020, we published an article telling that Capri Holdings Limited (NYSE: CPRI) was in 28 hedge fund portfolios. Its all time high statistics is 47. CPRI delivered a 29.64% return in the past 12 months.

Our calculations shows that Capri Holdings Limited (NYSE: CPRI) does not belong to 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.