Fundsmith LLP, an investment management firm, published its ‘Fundsmith Equity Fund’ year-end 2020 investor letter – a copy of which can be downloaded here. A return of 18.3% was recorded by the fund in the fourth quarter of 2020, outperforming its MSCI World benchmark that delivered a 12.3% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.op 5 holdings to have a peek at their top bets for 2021.
Fundsmith LLP, in their Q4 2020 investor letter, mentioned InterContinental Hotels Group PLC (NYSE: IHG) and emphasized their views on the company. InterContinental Hotels Group PLC is a Denham, UK-based hotel company that currently has a $12.9 billion market capitalization. Since the beginning of the year, IHG delivered a 9.17% return, extending its 12-month gains to 67.31%. As of March 10, 2021, the stock closed at $71.84 per share.
Here is what Fundsmith LLP has to say about InterContinental Hotels Group PLC in their Q4 2020 investor letter:
“We hardly need to discuss the reasons for the poor performance of InterContinental Hotels. Airline and travel reservations and hotel management have not been happy places to be in the past year, although it is worth noting nowhere near as bad as investing in actual airlines or hotels. InterContinental’s share price fall of -9.9% compares with a drop of -35.1% for the Dow Jones US Hotel and Lodging REIT Index. This illustrates the virtues of InterContinental’s business model in contrast to the industry it serve.
However, whilst they face a difficult situation, we are pleased that management has spent its time and effort managing liquidity and costs in an effort to ensure that they survive these events rather than pointlessly speculating about the likely timescale and course of recovery. We believe that they should not only survive but also strengthen their competitive position.”
Our calculations show that InterContinental Hotels Group PLC (NYSE: IHG) 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, InterContinental Hotels Group PLC was in 7 hedge fund portfolios. IHG delivered an 11.60% 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.