Argosy Investors recently released its Q4 2020 Investor Letter, a copy of which you can download here. Full-year 2020 performance was 29.8% in select accounts. The S&P 500 by comparison returned 18.4%. You should check out Argosy Investors’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, Argosy Investors’ highlighted a few stocks and Spectrum Brands Holdings Inc. (NYSE:SPB) is one of them. Spectrum Brands Holdings Inc. (NYSE:SPB) is a consumer product company. In the last three months, Spectrum Brands Holdings Inc. (NYSE:SPB) stock gained 29.4% and on January 15th it had a closing price of $80.82. Here is what Argosy Investors’ said:
“We also say goodbye to our 2-plus year odyssey with Spectrum Brands, a consumer packaged good and home improvement manufacturer. We lost about 15% on this investment, which is obviously not the direction we want to be headed. Looking back on the investment, I didn’t fully appreciate the state the operations were in. Spectrum had invested in additional warehouse and manufacturing capacity prior to our investment, and it took them years to get these assets functioning at appropriate levels. The setup for this investment was attractive given a CEO with strong capital allocation abilities, a business with several #1 or #2 brands, a discount resulting from HRG’s (a hedge fund) concentrated ownership in SPB that could close, and an attractive valuation based on free cash flow. This mattered little during the course of our investment, and I think due to fatigue more than anything we are moving on from this position. Like another of our fatigue-driven exits in Stericycle that led to strong gains for SRCL after our exit, this is probably an ideal buying opportunity if our timing is any indicator.”
In December 2020, we published an article revealing that Heartland Mid Cap Value Fund is bullish on Spectrum Brands Holdings Inc. (NYSE:SPB) stock. The investment firm said that the company still trades at meaningful discount to its peers on an enterprise value/earnings before interest, taxes, depreciation and amortization basis.
In Q3 2020, the number of bullish hedge fund positions on Spectrum Brands Holdings Inc. (NYSE:SPB) stock increased by about 46% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in SPB’s growth potential. Our calculations showed that Spectrum Brands Holdings Inc. (NYSE:SPB) 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.