FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
FAM Funds, in their Q4 2020 Investor Letter said that they acquired a position in Brookfield Infrastructure Corporation (NYSE: BIPC), and continuously believes in the capabilities of the company. Brookfield Infrastructure Corporation is a company that operates and owns critical and diverse global infrastructure networks and it currently has a $3 billion market cap. For the past 3 months, BIPC delivered a decent 23.15% return and settled at $67.08 per share at the closing of January 29th.
Here is what FAM Funds has to say about Brookfield Infrastructure Corporation in their investor letter:
“In August, we purchased a modest new position in Brookfield Infrastructure Corp. (BIPC). We have owned a position in Brookfield Asset Management (BAM) in our other strategies for many years. BAM established Brookfield Infrastructure Partners LP (BIP) in 2008 and continues to manage and hold shares in BIP; however, it was initially a limited partnership and owning limited partnership units in a mutual fund is difficult. Thankfully, on March 31, 2020, they created C-corp shares which we bought a few months later. BIPC owns a collection of infrastructure assets around the world including a UK utility, Brazilian toll roads, Australian railroads, and Indian cell towers. In addition to strong underlying businesses, in our opinion, management has historically shown significant skill allocating capital, often buying good assets from financially distressed owners.”
BIPC delivered a -7.22% return in the past 12 months. Our calculations show that Brookfield Infrastructure Corporation (NYSE: BIPC) 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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