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Etsy Inc (ETSY) Has Risen 134% in Last One Year, Outperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Greenhaven Road Capital‘s top stock picks. Greenhaven Road Capital, an investment management firm, is bullish on Etsy Inc (NASDAQ:ETSY) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Etsy Inc (NASDAQ:ETSY) stock. Etsy Inc (NASDAQ:ETSY) is an e-commerce company.

On August 1, 2019, Greenhaven Road Capital had released its Q2 2019 investor letter. Etsy Inc (NASDAQ:ETSY) was one of the Top 5 holdings of Greenhaven in Q2 2019. The stock has posted a return of 133.7% in the trailing one year period, outperforming the S&P 500 Index which returned 20.0% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Etsy Inc (NASDAQ:ETSY) stock has risen by 186.7%.

Greenhaven’s fund posted a return of -4.0% in the second quarter of 2019, underperforming the S&P 500 Index which returned 4.3% in the same quarter. Let’s take a look at comments made by Greenhaven Road Capital about Etsy Inc (NASDAQ:ETSY) in the Q2 2019 investor letter.

“ETSY (ETSY) – Etsy is the most expensive company that we own on a price-to-sales basis. It also one of the highest quality and most resilient as a vibrant two sided marketplace. Management is making several operational improvements that have grown revenues and improved margins. With price increases, they are investing in growing the base of buyers, improving the search results shoppers receive, and enhancing the tools available for sellers. Etsy has announced their first significant acquisition, and we believe this boutique Amazon alternative has a long runway for growth with no additional capital requirements.”

Best Things to Sell on Etsy to Make Money in 2018

Evan Lorne/Shutterstock.com

In Q1 2020, the number of bullish hedge fund positions on Etsy Inc (NASDAQ:ETSY) stock decreased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Etsy’s growth potential. Our calculations showed that Etsy Inc (NASDAQ:ETSY) 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 scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out ideas like this under-the-radar stock to identify the next tenbagger. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. 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.