First Eagle is Betting on Taiwan Semiconductor (TSM) Stock

First Eagle Investment Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 5.64% for the third quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 7.93% in the same quarter. You should check out First Eagle’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, First Eagle highlighted a few stocks and Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM) is one of them. Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM) is a semiconductor contract manufacturing and design company. Year-to-date, Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM) stock gained 46.1% and on October 29th it had a closing price of $84.89. Here is what First Eagle said:

“Shares of Taiwan Semiconductor (TSMC) traded higher during the quarter on signs that its total addressable market was poised to expand. Intel announced that it was facing delays in the manufacture of its next-generation chips and may contract out the work to third parties, opening the door for a large-scale chip “foundry” like TSMC to pick up some of the business. Foundries make chips designed and named by other companies; TSMC already produces certain chips for Intel.”

Earlier this week, we published an article revealing that Bonsai Partners is bullish on Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM) stock. The investment firm believes that the stock has massive upside potential.

In Q2 2020, the number of bullish hedge fund positions on Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Taiwan Semiconductor’s growth potential. Our calculations showed that Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM) 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.