Billionaire David Siegel’s Top 5 Stock Picks

2. Home Depot Inc (NYSE: HD)

In the third quarter, Two Sigma cut its position in Home Depot by 8%, ending the period with 1.74 million shares of the company, worth $482.2 million. Home Depot is seeing a surge in demand as people confined to their homes in the coronavirus are spending more money and time fixing and upgrading their houses. In the third quarter, the company said its comp sales jumped 24.1%.

As of the end of the third quarter, 73 hedge funds tracked by Insider Monkey held positions in Home Depot, down from 85 funds a quarter earlier.

Ensemble Capital Management said the following about HD stock in their Q4 Investor Letter:

“A notable detractor from our performance came from our investment in Home Depot. Home Depot reported outstanding results during 2020, with the stock outperforming the S&P 500 for the full year. But after strong second and third quarter performance, the stock was down slightly in the fourth quarter, declining approximately 4%. We believe that home improvement spending will remain elevated in the years ahead as housing activity continues to rebound after years of lower than normal rates of Americans moving.”