Is Chevron Corporation (CVX) A Smart Long-Term Buy?

Nelson Capital Management, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund discussed their interpretation of the economy’s reopening drives, their asset transactions, tax updates, featured equity, and a special topic about the life after the pandemic. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Nelson Capital Management, in its Q1 2021 investor letter, mentioned Chevron Corporation (NYSE: CVX), and shared their insights on the company. Chevron Corporation is a San Ramon, California-based oil industry company that currently has a $212.1 billion market capitalization. Since the beginning of the year, CVX delivered a 30.28% return, while its 12-month gains are up by 15.24%. As of May 07, 2021, the stock closed at $110.02 per share.

Here is what Nelson Capital Management has to say about Chevron Corporation in its Q1 2021 investor letter:

“In the energy sector, we bought a position in Chevron (tkr: CVX). As interest rates have increased, we have witnessed a rotation out of growth and momentum stocks and into value stocks. We think this trend could continue, which would be advantageous for Chevron . Additionally, we anticipate an uptick in oil and gas demand as more people get vaccinated and air travel picks up . Higher oil prices coupled with increased demand should lead to better earnings results for Chevron, which will enable it to support (or perhaps grow) its Large 5% dividend.”

Chevron Corporation (NYSE:CVX), Gas Station, Oil, Fuel, Logo, Sign, Symbol, Cars

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Our calculations show that Chevron Corporation (NYSE: CVX) 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, Chevron Corporation was in 50 hedge fund portfolios compared to 43 funds in the third quarter. CVX delivered a 23.26% 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.