Is Carlyle Group (CG) A Smart Long-Term Buy?

Vulcan Value Partners, an investment management firm, published its “Large Cap, Small Cap, Focus Composite, Focus Plus Composite, and All Cap Composite” first quarter 2021 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap Composite Fund delivered a 7.1% net return for the first quarter of 2021, 20.4% for the Small Cap, 5.5% for both the Focus  Composite and Focus Plus Composite Fund,  and 8.7% return was delivered by its All Cap Composite Fund for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Vulcan Value Partners, in its Q1 2021 investor letter, mentioned The Carlyle Group Inc. (NASDAQ: CG), and shared their insights on the company. The Carlyle Group Inc. is a Washington, D.C.-based private equity company that currently has a $15 billion market capitalization. Since the beginning of the year, CG delivered a 34.99% return, extending its 12-month gains to 58.24%. As of May 21, 2021, the stock closed at $42.26 per share.

Here is what Vulcan Value Partners has to say about The Carlyle Group Inc. in its Q1 2021 investor letter:

Carlyle Group Inc., one of KKR’s peers, also was a material contributor during the quarter. The company has deep and growing relationships with capital providers. Carlyle Group enjoys a very stable management fee stream and a proven ability to convert capital into a performance fee stream, both of which lead to a business with a stable and growing intrinsic value. In addition, the company enjoys nice tailwinds of increasing allocations to private and alternative investments. Carlyle Group reported strong results during the quarter, and we are happy to own it in our portfolio.”


Our calculations show that The Carlyle Group Inc. (NASDAQ: CG) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, The Carlyle Group Inc. was in 21 hedge fund portfolios, compared to 14 funds in the third quarter. CG delivered a 16.27% 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.

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Disclosure: None. This article is originally published at Insider Monkey.