Here’s Why Nelson Capital Acquired a Position in Xylem Inc. (XYL)

Nelson Capital Management, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund discussed their interpretation of the economy’s reopening drives, their asset transactions, tax updates, featured equity, and a special topic about the life after the pandemic. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Nelson Capital Management, in its Q1 2021 investor letter, mentioned Xylem Inc. (NYSE: XYL), and shared their insights on the company. Xylem Inc. is a US-based water technology provider that currently has a $21.4 billion market capitalization. Since the beginning of the year, XYL delivered a 17.24% return, while its 12-month gains are up by 89.43%. As of May 07, 2021, the stock closed at $119.34 per share.

Here is what Nelson Capital Management has to say about Xylem Inc. in its Q1 2021 investor letter:

“Xylem is one of the leading water technology companies in the world, with about half of its revenues derived from outside the U.S. Its portfolio spans a wide range of equipment and solutions for the water industry, including the transport, treatment, testing and efficient use of water for public utilities as well as industrial, commercial, and residential customers.”

Countries with the Cleanest Tap Water in the World in 2018


Our calculations show that Xylem Inc. (NYSE: XYL) 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, Xylem Inc. was in 21 hedge fund portfolios. XYL delivered a 21.54% 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.