Is Griffin Industrial Realty (GRIF) a Smart Long-term Buy?

Rhizome Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 2.9% for the third quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Rhizome Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Rhizome Partners highlighted a few stocks and Griffin Industrial Realty Inc. (NASDAQ:GRIF) is one of them. Griffin Industrial Realty Inc. (NASDAQ:GRIF) is engaged in real estate business. Year-to-date, Griffin Industrial Realty Inc. (NASDAQ:GRIF) stock gained 47.3% and on November 13th it had a closing price of $58.24. Here is what Rhizome Partners said:

“Griffin reported a 12% increase in NOI during Q2 2020 versus Q2 2019. The company recently raised $27.2mm of equity at $50 per share with some warrants and contingent value rights mixed in. While the equity raise was done at a discount to net asset value, it is an important first step towards building an institutional shareholder base. Years ago, we would have balked at such a transaction. Given the long‐term structural tailwind of e‐commerce, we believe that Griffin could potentially become an exciting growth story.”

Home expenses or investing concept., home, loan, wealth, financing, buy, save, business, income, property, estate, possession, household, retirement, real, ownership, moneybox, invest, house, costs

Aleksandr Bagri/

This isn’t the first time Rhizome Partners talked about Griffin Industrial Realty Inc. (NASDAQ:GRIF) favorably either. The investment firm has been a long time Griffin Industrial Realty Inc. (NASDAQ:GRIF) bull. In April 2020, we shared Rhizome Partners’ bullish Griffin Industrial Realty Inc. (NASDAQ:GRIF) thesis in this article.

In Q1 2020, the number of bullish hedge fund positions on Griffin Industrial Realty Inc. (NASDAQ:GRIF) stock increased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Griffin’s growth potential. Our calculations showed that Griffin Industrial Realty Inc. (NASDAQ:GRIF) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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.