Cedar Creek Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 5.4% in the third quarter of 2020, underperforming its benchmark, the S&P 500 which returned 9.0% in the same period. You should check out Cedar Creek Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the said letter, Cedar Creek Partners highlighted a few stocks and Diamond Hill Investment Group Inc (NASDAQ:DHIL) is one of them. Diamond Hill Investment Group Inc (NASDAQ:DHIL) is an independent investment management firm. Year-to-date, Diamond Hill Investment Group Inc (NASDAQ:DHIL) stock gained 1.2% and on October 20th it had a closing price of $142.10. Here is what Cedar Creek Partners said:
“We exited our position at Diamond Hill (DHIL) after a disappointing earnings release. We have been in and out of the stock over the last fifteen years. We believe there has always been a tension on whether the firm was being run for shareholders or its employees, which gets reflected in their operating margin. Second quarter operating margins were well below our expectations, and the company decreased their share buyback when the share price declined sharply, the exact opposite of what they should have done.”
In Q1 2020, the number of bullish hedge fund positions on Diamond Hill Investment Group Inc (NASDAQ:DHIL) stock decreased by about 21% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Diamond Hill’s downside potential. Our calculations showed that Diamond Hill Investment Group Inc (NASDAQ:DHIL) 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.