FAM Funds on Hallmark (HALL): “Best Move was to Exit the Position”

FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

FAM Funds, in their Q4 2020 Investor Letter said that they exited their position in Hallmark Financial Services, Inc. (NASDAQ: HALL), because of the problems thrown at the company. Hallmark Financial Services, Inc. is an insurance company that currently has a $64.7 million market cap. For the past 3 months, HALL delivered a decent  32.84% return and settled at $3.57 per share at the closing of January 28th.

Here is what FAM Funds has to say about Hallmark Financial Services, Inc. in their investor letter:

“Sadly, in the middle of the advancing storm, our longtime holding Hallmark Financial (HALL) reported they were having significant problems in their insurance line for small trucking operators. A series of massive jury verdicts threw the industry into turmoil. As a result, even for HALL’s small fleet customers, litigation is now more prevalent and costly. We decided the best move was to exit the position.”

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Last December 2020, we published an article telling that Hallmark Financial Services, Inc. (NASDAQ: HALL) was in 7 hedge fund portfolios. Its all time high statistics is 12. HALL delivered a -79.07% return in the past 12 months.

Our calculations show that Hallmark Financial Services, Inc. (NASDAQ: HALL) does not belong in our list of the 30 most popular stocks among hedge funds.

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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Disclosure: None. This article is originally published at Insider Monkey.