Choice Equities Capital Management, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. A net return of +29.2% was recorded by the fund for the Q1 of 2021, outperforming its Russell 2000 benchmark that delivered a +12.7% return, and the S&P 500 Index that had a +6.2% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Choice Equities Capital Management, in its Q1 2021 investor letter, mentioned At Home Group Inc. (NYSE: HOME), and shared their insights on the company. At Home Group Inc. is a Plano, Texas-based furniture stores company that currently has a $2.4 billion market capitalization. Since the beginning of the year, HOME delivered a 136.87% return, extending its 12-month gains to 687.53%. As of May 27, 2021, the stock closed at $36.62 per share.
Here is what Choice Equities Capital Management has to say about At Home Group Inc. in its Q1 2021 investor letter:
“HOME – Last week as I was wrapping up a draft of this letter, At Home received a buyout offer from a private equity firm for $36 a share. The deal looks like a good one – for Hellman & Freidman. Though the offer carries a fairly standard ~20% premium to recent trading prices, the 9x multiple on Wall Street’s potentially low 2022 EBITDA estimate is several turns below peers’ current trading levels. The offer looks particularly uninspiring when considering how At Home is thriving in a strong category where its competitive position and ability to capitalize on its large market opportunity have only been enhanced by the recent exits of several competitors. Even so, regardless of where the offer price settles, this one has been a good one for us since our involvement in late 2019.”
Our calculations show that At Home Group Inc. (NYSE: HOME) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, At Home Group Inc. was in 30 hedge fund portfolios, compared to 31 funds in the fourth quarter of 2020. HOME delivered a 54.71% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.