Wedgewood Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The Fund returned 12.2% for the fourth quarter of 2020. Meanwhile, the benchmark S&P 500 Index and the Russell 1000 Growth Index gained 12.2% and 11.4%, respectively. You should check out Wedgewood Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, Wedgewood Partners highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) is one of them. Alphabet Inc. (NASDAQ:GOOG) is a technology company. In the last three months, Alphabet Inc. (NASDAQ:GOOG) stock gained 11.6% and on January 14th it had a closing price of $1,740.18. Here is what Wedgewood Partners said:
“Alphabet’s core Google revenues grew +9% during the quarter, a meaningful acceleration from the -8% decline during the COVID-19-impacted second quarter. The Google unit also unexpectedly showed some modest expense leverage after several quarters of heavy reinvestment, driving double-digit earnings growth at Alphabet. We would not be surprised if that leverage is short-lived. However, Alphabet continues to meaningfully under-earn relative to its potential, and we welcome any effort that brings forward, or at least highlights, the Company’s pent-up earnings power. On the latter score, Alphabet announced it will be providing more detailed operating segment profit data in the coming year.”
Earlier this month, we published an article revealing that Alphabet Inc. (NASDAQ:GOOG) was one of the 10 best stocks to buy and hold for 5 years according to ARK’s Cathie Wood.
In Q3 2020, the number of bullish hedge fund positions on Alphabet Inc. (NASDAQ:GOOG) stock increased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Alphabet’s growth potential. Our calculations showed that Alphabet Inc. (NASDAQ:GOOG) is ranked #5 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.