First Eagle Investment Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 3.71% was delivered by the fund for the Q1 of 2021. The Fund underperformed the MSCI World Index in the period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
First Eagle Investment Management, in their Q1 2021 investor letter, mentioned Exxon Mobil Corporation (NYSE: XOM) and shared their insights on the company. Exxon Mobil Corporation is an Irving, Texas-based oil and gas corporation that currently has a $233.9 billion market capitalization. Since the beginning of the year, XOM delivered a 34.09% return, while its 12-month gains are up by 27.20%. As of April 22, 2021, the stock closed at $55.27 per share.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation in their Q1 2021 investor letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. Recovering oil prices on improvements in demand for crude and other distillates helped fuel strong performance across the energy complex, including shares of Exxon Mobil. The company’s financial results have improved markedly from the Covid-related demand shocks in 2020, helping ease concerns about the sustainability of Exxon’s dividend, which is among the largest in the S&P 500 Index. In addition, Exxon has reiterated its commitment to reducing capital expenditures, which we believe should further bolster the resilience of its cash flows against future demand slowdowns.”
Our calculations show that Exxon Mobil Corporation (NYSE: XOM) 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, Exxon Mobil Corporation was in 63 hedge fund portfolios, compared to 52 funds in the third quarter. XOM delivered a 14.88% 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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