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Crimson Wine Group (CWGL) Has Fallen 30% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Palm Valley Capital Management’s top stock picks. Palm Valley Capital, an investment management firm, is bullish on Crimson Wine Group Ltd (OTCMKTS:CWGL) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Crimson Wine Group Ltd (OTCMKTS:CWGL) stock. Crimson Wine Group Ltd (OTCMKTS:CWGL) is a winery company.

On July 1, 2019, Palm Valley Capital had released its Q2 2019 investor letter. The investment firm said that Crimson Wine Group Ltd (OTCMKTS:CWGL) was one of the ten equities that the fund held in Q2 2019. The stock has posted a return of -29.5% in the trailing one year period, underperforming fund’s benchmark the S&P Small Cap 600 Index which returned -2.2% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Crimson Wine Group Ltd (OTCMKTS:CWGL) stock has fallen by 29.1%.

Palm Valley Capital fund posted a return of 0.7% from April 30, 2019 through June 30, 2019, outperforming fund’s benchmark the S&P Small Cap 600 Index which returned -1.9% in the same period. Let’s take a look at comments made by Palm Valley Capital about Crimson Wine Group Ltd (OTCMKTS:CWGL) in the Q2 2019 investor letter.

“Crimson Wine Group produces premium wines from California, Oregon, and Washington. The firm owns six vineyards and wineries in Napa, Sonoma, and other top winegrowing districts. Over the past several years, the company has experienced contracting margins as a result of brisk increases in grape prices. Crimson sources two-thirds of its grapes from independent growers. However, the value of Crimson’s prime acreage has continued to appreciate, particularly in Napa Valley, where land is scarce. We believe Crimson sells for a discount to the value of its vineyards, wineries, and inventory.”

Merlot

Our calculations showed that Crimson Wine Group Ltd (OTCMKTS:CWGL) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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.