Oakmark Funds, an investment management firm, published its “Oakmark Global Select Fund” first quarter 2021 investor letter – a copy of which can be seen here. A return of 10.87% was reported by the fund for the Q1 of 2021, outperforming its MSCI World benchmark that delivered a 4.92% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Oakmark Global Select Fund, in their Q1 2021 investor letter, mentioned Credit Suisse Group AG (NYSE: CS) and shared their insights on the company. Credit Suisse Group AG is a Zürich, Switzerland-based investment banking company that currently has a $25.5 billion market capitalization. Since the beginning of the year, CS delivered a -16.33% return, while its 12-month gains are still up by 22.68%. As of April 12, 2021, the stock closed at $10.71 per share.
Here is what Oakmark Global Select Fund has to say about Credit Suisse Group AG in their Q1 2021 investor letter:
“Credit Suisse was a top detractor for the first quarter, following a series of negative headlines in March. Early in the month, the Switzerland-based financial services firm lost ~$2 billion – $3 billion in market cap because a fund in its asset management division had exposure to the now-insolvent Greensill Capital. This market cap decline far surpassed Credit Suisse’s direct exposure to Greensill and ignored the fact that a large portion of its clients’ exposure was in cash, highly rated securities or insured investments. At the end of March, the company’s share price dropped again when a New York-based hedge fund client, called Archegos, defaulted on its margin calls to Credit Suisse’s prime brokerage business. As a result, Credit Suisse announced an expected charge of approximately CHF 4.4 billion and a first quarter 2021 pre-tax loss of approximately CHF 900 million. The company also provided updated profitability guidance that greatly exceeded analysts’ estimates, although this news was largely overshadowed by the Archegos headlines. We are pleased with Credit Suisse’s profitability improvements, excluding the charge, and we will continue to monitor the situation closely. We expect the company to make material changes to its risk management leadership in the wake of these events and we believe incoming Chairman António Horta-Osório will bring fresh perspective to Credit Suisse, given his impressive tenure as CEO of Lloyds Banking Group.”
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Our calculations show that Credit Suisse Group AG (NYSE: CS) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Credit Suisse Group AG was in 11 hedge fund portfolios compared to 13 funds in the third quarter. CS delivered a -23.88% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
