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If You Own Dollar Tree (DLTR) Stock, Should You Sell It Now?

Upslope Capital recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Fund returned 1.2% net of fees for the June quarter, as compared to the 23.9% return of the S&P Midcap 400 ETF and 8.1% return of the HFRX Equity Hedge Index. You should check out Upslope Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Upslope Capital highlighted a few stocks and Dollar Tree Inc. (NASDAQ:DLTR) is one of them. Dollar Tree Inc. (NASDAQ:DLTR) is a discount store company. Year-to-date, Dollar Tree Inc. (NASDAQ:DLTR) stock gained 3.0% and on July 20th it had a closing price of $97.12. Here is what Upslope Capital said:

“DollarTree (DLTR) – Exited Long

After multiple quarters of lackluster execution and excuses from management, it became clear that thesis drift (hoping for fresh activist involvement – not central to our original long thesis) was setting in. Further, a big part our DLTR thesis was expected outperformance (of the business and stock) during times of economic stress. Given questionable execution in recent years, we are no longer confident that such outperformance is a given.”

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In Q1 2020, the number of bullish hedge fund positions on Dollar Tree Inc. (NASDAQ:DLTR) stock decreased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Dollar Tree’s downside potential. Our calculations showed that Dollar Tree Inc. (NASDAQ:DLTR) 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

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so if you have any good ideas send us an email. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.