Greystone Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +45.7% was delivered by the fund’s median account for the Q1 of 2021, ahead of its S&P 500 and Russell 2000 benchmarks that delivered a 6.2% and 12.7% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Greystone Capital Management, in their Q1 2021 investor letter, mentioned Power REIT (NYSE: PW) and shared their insights on the company. Power REIT is a US-based real-estate investment trust that currently has a $146.7 million market capitalization. Since the beginning of the year, PW delivered a 66.49% return, impressively extending its 12-month gains to 229.90%. As of April 26, 2021, the stock closed at $44.47 per share.
Here is what Greystone Capital Management has to say about Power REIT in their Q1 2021 investor letter:
“Following a 70%+ gain in our holding of Power REIT, I made the decision to trim some of the position as my original thesis is playing out nicely and the market has started to digest the fundamentals of the business. Power REIT conducted a rights offering during the quarter in which we did not participate in order to allocate capital to higher return opportunities. The terms of the rights offering, where PW will issue around 2.0mm shares should allow them to fully fund their business strategy into the foreseeable future, on which they are firing on all cylinders. PW announced two more accretive acquisitions during the quarter which served to both increase their annual FFO run rate significantly and diversify their geographic exposure. Still trading at a market multiple of FFO (growing faster than any industry peers), there remains a path for PW to reach $4-5/share in FFO over the next few years, which would make today’s price look like a bargain.”
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Our calculations show that Power REIT (NYSE: PW) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Power REIT was in 1 hedge fund portfolio. PW delivered a decent 38.19% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
