Here’s Why Vulcan Value Partners Sold its Hilton Worldwide (HLT) Stake

Vulcan Value Partners, an investment management firm, published its “Large Cap, Small Cap, Focus Composite, Focus Plus Composite, and All Cap Composite” first quarter 2021 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap Composite Fund delivered a 7.1% net return for the first quarter of 2021, 20.4% for the Small Cap, 5.5% for both the Focus  Composite and Focus Plus Composite Fund,  and 8.7% return was delivered by its All Cap Composite Fund for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Vulcan Value Partners, in its Q1 2021 investor letter, mentioned Hilton Worldwide Holdings Inc. (NYSE: HLT), and shared their insights on the company. Hilton Worldwide Holdings Inc. is a McLean, Virginia-based hospitality company that currently has a $33.5 billion market capitalization. Since the beginning of the year, HLT delivered an 8.37% return, extending its 12-month gains to 55.25%. As of May 19, 2021, the stock closed at $120.57 per share.

Here is what Vulcan Value Partners has to say about Hilton Worldwide Holdings Inc. in its Q1 2021 investor letter:

Hilton Worldwide Holdings Inc. was a great investment for us over the five years that we owned it. We admire the company’s great culture, fantastic management team, well-known brands, and world-class operations. Hilton’s CEO, Chris Nassetta, is an outstanding leader and an intelligent capital allocator. While painful, we sold Hilton to reallocate capital into more discounted companies.”


Our calculations show that Hilton Worldwide Holdings Inc. (NYSE: HLT) 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, Hilton Worldwide Holdings Inc. was in 60 hedge fund portfolios, compared to 57 funds in the third quarter. HLT delivered a 5.65% 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.