Miller Value Partners recently released its Q1 2021 Investor Letter, a copy of which you can download here. The Miller Opportunity Trust posted solid gains, with Class I up 16.67%, outperforming its benchmark, the S&P 500 Index which returned 6.17% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Discovery Inc. (NASDAQ:DISCA) is one of them. Discovery Inc. (NASDAQ:DISCA) is a mass media company. In the last three months, Discovery Inc. (NASDAQ:DISCA) stock lost 42%. Here is what the fund said:
“Discovery Inc. (DISCA) had a wild ride over the quarter rising 157% until it peaked in mid-March where it then preceded to fall 44% over the final 8 days of the quarter for a total period return of 44%. The company reported 4Q results with revenue coming in at $2.89B ahead of consensus of $2.83B, with operating income before depreciation and amortization (OIBDA) coming in at $1B above consensus of $934M leading to adjusted Earnings Per Share (EPS) of $0.76 versus $0.72 expected. The real surprise came in the strength in their DTC offering which ended the period with 11M global subscribers ahead of consensus, which was estimating 8M subscribers by this point. The company took a hit late in March having the largest one-day drop in the company’s history. Investors speculated the move was the result of the liquidation of positions of Archegos Capital Management resulting in the sales of $30B of stock.”
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Earlier this month, we published an article revealing that Silver Ring Value Partners is also betting on Discovery Inc. (NASDAQ:DISCA) stock.
Our calculations showed that Discovery Inc. (NASDAQ:DISCA) isn’t ranked among the 30 most popular stocks among hedge funds.
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.
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 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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.
