If You Own Walt Disney (DIS) Stock, Should You Sell It Now?

Evermore Global Advisors recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Evermore Global Value Fund posted a return of 10.35% for the quarter, underperforming its benchmarks, the MSCI All Country World Index ex USA (MSCI ACWI ex USA), the MSCI All Country World Index (MSCI ACWI), and the Morningstar World Small/Mid Stock Category Average. You should check out Evermore Global Advisors’ 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, Evermore Global Advisors’ highlighted a few stocks and Walt Disney Co (NYSE:DIS) is one of them. Walt Disney Co (NYSE:DIS) is a multinational mass media and entertainment conglomerate. Year-to-date, Walt Disney Co (NYSE:DIS) stock lost 19.1% and on July 31st it had a closing price of $116.94. Here is what Evermore Global Advisors’ said:

“The Walt Disney Company (Country: U.S.; Ticker: DIS US) – The Fund exited its position in The Walt Disney Company (“DIS”) in Q2. DIS faces challenges of unknown duration in several businesses due to COVID-19; theme parks around the world are shut down or operating at a very limited capacity, Hollywood studio production has come to a standstill, professional and collegiate sports leagues in the U.S. are attempting to operate in uncharted waters, and movie theaters face an increasingly unknown future. While we remain constructive on the transformation that is ongoing at DIS, we made the decision to allocate capital to other ideas in the portfolio given the aforementioned business challenges.”

Last month, we published an article revealing that NZS Capital is bullish about Walt Disney Co (NYSE:DIS)  stock. The investment firm believes that the company would evolve stronger post the pandemic.

In Q1 2020, the number of bullish hedge fund positions on Walt Disney Co (NYSE:DIS)  stock decreased by about 14% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Walt Disney’s downside potential. Our calculations showed that Walt Disney Co (NYSE:DIS)  is ranked #20 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. Cannabis stocks are roaring back in 2020, so we are checking out this under-the-radar stock. 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. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. 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.