If you are looking for the best ideas for your portfolio you may want to consider some of Greenlight Capital’s top stock picks. Greenlight Capital, an investment management firm, is bearish on Voya Financial Inc. (NYSE:VOYA) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Voya Financial Inc. (NYSE:VOYA) stock. Voya Financial Inc. (NYSE:VOYA) is a financial investment management company. The stock is down 24.9% since the Greenlight Capital’s pitch in January 2020, which suggests the investment firm was right in its decision. On a year-to-date basis, Voya Financial Inc. (NYSE:VOYA) stock has fallen by 24.1%.
On January 21, 2020, Greenlight Capital had released its Q4 2019 Investor Letter. Greenlight Capital sold Voya Financial Inc. (NYSE:VOYA) stock as it was trading at a premium to its book value. The investment firm held VOYA stock for a period of about six and a half years.
In 2019, the Greenlight Capital Fund recorded a return of 13.8% as compared to 31.5% of the S&P 500 Index.
Let’s take a look at comments made by Greenlight Capital about Voya Financial Inc. (NYSE:VOYA) in the letter.
“After six and a half years, we exited our investment in Voya Financial. The position, which had many similarities to BHF, generated a compounded return of 21.7% for the Partnerships. Management executed a successful business repositioning and bought back 53% of its shares outstanding. With the shares trading at a premium to book value and a double digit P/E multiple, we exited to focus our capital on BHF.”
In Q1 2020, the number of bullish hedge fund positions on Voya Financial Inc. (NYSE:VOYA) stock decreased by about 26% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with VOYA’s downside potential. Our calculations showed that Voya Financial Inc. (NYSE:VOYA) 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. There is a lot of volatility in the markets and this presents amazing investment opportunities from time to time. For example, this trader claims to deliver juiced up returns with one trade a week, so we are checking out his highest conviction idea. A second trader claims to score lucrative profits by utilizing a “weekend trading strategy”, so we look into his strategy’s picks. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We recently recommended several stocks partly inspired by legendary Bill Miller’s investor letter. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. 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.