Here’s Why Blue Hawk Investment Likes Square (SQ) Stock

Blue Hawk Investment Group, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 7.48% was recorded by the fund for the Q4 of 2020, below its S&P 500 benchmark that delivered an 11.69% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Blue Hawk Investment Group, in their Q4 2020 Investor Letter, said that Square, Inc. (NYSE: SQ) was one of the top contributors for their long book. Square, Inc. is a financial services and mobile payment company that currently has a $116 billion market cap. For the past 3 months, SQ delivered a decent 39.84% return and settled at $240.38 per share at the closing of February 5th.

Here is what Blue Hawk Investment Group has to say about Square, Inc. in their investor letter:

“Square was the next top contributor and ended the year as the third largest holding in the portfolio.  Square was a new addition to the portfolio in 2020 and added 436 bps to performance since it was first bought in the summer. It is still our third largest holding. “

Last month, we published an article of Avory & Co’s bullish investment thesis on Square, Inc. (NYSE: SQ). In our recent data, the company was in 13 hedge fund portfolios. SQ delivered a huge 221.05% return in the past 12 months.

Our calculations show that Square, Inc. (NYSE: SQ) 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.