Miller Value Partners recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Miller Value Partners Opportunity Equity Fund posted a return of -38.4% for the quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Miller Value Partners top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Miller Value Partners highlighted a few stocks and United Airlines Holdings Inc. (NASDAQ:UAL) is one of them. United Airlines is an airlines holding company. Year-to-date, United Airlines Holdings Inc. (NASDAQ:UAL) stock lost 54.5% and on June 9th it had a closing price of $44.64. Here is what Miller Value Partners said:
“At the end of January, we had exited our position in United Airlines Holding Inc. (UAL) while the stock was still trading in the ~$80s but decided to re-enter the name in March having watched the stock fall to the ~$20s amid the COVID-19 pandemic. As a result, our position in United returned 20.0% for the quarter making it our largest contributor. The name declined as travel was brought to a standstill as a result of the spread of COVID-19 and stay-at-home orders around the world. During the period, United announced that it had cut about 80% of its capacity in April with even larger cuts expected in May. The company has been losing more than $100M/day and they expect 4Q revenue to be down at least 30% YoY. The stock benefited from the passage of the Coronavirus Aid, Relief, and Economic Security Act (the CARES act) which will provide airlines with up to $33B in grants to make payroll, $29B in loans should other sources of liquidity be tapped out as well as waiving federal excise and fuel taxes.”
In Q4 2019, the number of bullish hedge fund positions on United Airlines Holdings Inc. (NASDAQ:UAL) stock increased by about 19% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with UAL’s growth potential. Our calculations showed that United Airlines Holdings Inc. (NASDAQ:UAL) 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
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.