Heartland Mid Cap Value Fund recently released its third-quarter investor letter – a copy of which is available for download here. The fund posted a return of 3.1% for the quarter, underperforming its benchmark, the Russell Midcap Value Index which returned 6.4% in the same quarter. You should check out Heartland’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Heartland Advisors highlighted a few stocks and Mohawk Industries Inc (NYSE:MHK) is one of them. Mohawk Industries Inc (NYSE:MHK) is a flooring manufacturer. Year-to-date, Mohawk Industries Inc (NYSE:MHK) stock gained 1.5% and on December 18th it had a closing price of $138.43. Here is what Heartland Advisors said:
“The portfolio’s holding in Consumer Discretionary were up modestly on an absolute basis but lagged the sector average for the benchmark. Most of the weakness came from a single name, Mohawk Industries, Inc. (MHK), a building products company and the dominant U.S. player in flooring. Shares sold off after details from a class action lawsuit filed against the company were disclosed. The lawsuit alleges that management manipulated sales figures for one of its products through questionable accounting practices.
After digging deeper into the allegations, we chose to significantly reduce our exposure to the name and continue to monitor the situation.”
In Q3 2020, the number of bullish hedge fund positions on Mohawk Industries Inc (NYSE:MHK) stock increased by about 28% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Mohawk’s growth potential. Our calculations showed that Mohawk Industries Inc (NYSE:MHK) isn’t ranked among 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.