Laughing Water Capital recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 28.2% for the quarter (net of fees), outperforming their benchmark, the S&P 500 Index which returned 12.2% in the same quarter. You should check out Laughing Water Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q4 2020 Investor Letter, Laughing Water Capital highlighted a few stocks and Avid Bioservices Inc. (NASDAQ:CDMO) is one of them. Avid Bioservices Inc. (NASDAQ:CDMO) is a biotechnology company. In the last three months, Avid Bioservices Inc. (NASDAQ:CDMO) stock gained 81.7% and on January 25th it had a closing price of $14.70. Here is what Laughing Water Capital said:
“Avid Bioservices (CDMO) – Long time holding CDMO is entering the next phase of its growth following a recent capital raise that will help finance the expansion of the company’s drug manufacturing facilities. I expect that the business will remain lumpy, and the stock will have its ups and downs, but the industry remains supply constrained while demand continues to grow, creating an attractive backdrop for continued success. Specific to CDMO, examining the pipelines of the company’s key customers suggests continued above industry growth levels.”
Laughing Water Capital has been a long time Avid Bioservices Inc. (NASDAQ:CDMO) bull. In September 2020, we shared Laughing Water Capital’s Q2 2019 bullish CDMO’s thesis in this article.
In Q3 2020, the number of bullish hedge fund positions on Avid Bioservices Inc. (NASDAQ:CDMO) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in CDMO’s growth potential. Our calculations showed that Avid Bioservices Inc. (NASDAQ:CDMO) 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
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 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. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.