Curreen Capital, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 49.70% was recorded by the fund for the Q4 of 2020, above both its S&P 500 benchmark that returned 12.15% and the MSCI World Index that returned 14.05%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Curreen Capital, in their Q4 2020 Investor Letter said that they re-acquired Credit Acceptance Corporation (NASDAQ: CACC) because accordingly, the business is a worthy contender in the subprime auto lending market. Credit Acceptance Corporation is an auto finance company that currently has a $5.7 billion market cap. For the past 3 months, CACC delivered a -4.25% return and settled at $325.19 per share at the closing of January 22nd.
Here is what Curreen Capital has to say about Credit Acceptance Corporation in their Investor Letter:
“This is the third time that we have owned Credit Acceptance – we first bought it in June 2014, then again in November 2015. While we have made money buying and selling Credit Acceptance over the years, I became increasingly annoyed with myself for selling it (most recently in October 2018). I see the business as a superior competitor in the subprime auto lending market. Every quarter they report their financial results, I update my figures, and my valuation for the business goes up. The business grows and grows, they allocate capital well, and I am forced to ask myself: why don’t we own this? I understand it, can see how it is great, and believe that it will be worth much more as time rolls on. In October the market provided us with the opportunity to buy the stock at an attractive price, and we took it, paying $289.41 for our shares.”
CACC delivered a -6.05% return YTD. Our calculations showed that Credit Acceptance Corporation (NASDAQ: CACC) does not belong to the 30 most popular stocks among hedge funds. However, it is ranked 6th in our list of 10 Best Consumer Finance Stocks To Buy Now.
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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