Miller Value Partners recently released its Q1 2021 Investor Letter, a copy of which you can download here. In the first quarter, the Miller Income Fund’s I-shares returned 17.36% versus 0.90% for the ICE BofA Merrill Lynch High Yield Index. 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 Viatris Inc (NASDAQ:VTRS) is one of them. Viatris Inc (NASDAQ:VTRS) is a pharmaceutical company. In the last three months, Viatris Inc (NASDAQ:VTRS) stock lost 15%. Here is what the fund said:
“Viatris Inc (VTRS) Viatris Inc (VTRS) was the top detractor over the quarter, falling 17.5% in the company’s first full quarter following the combination of Mylan and Pfizer’s Upjohn business. Management initiated FY21 guidance that came in below expectations, including revenue of $17.2Bn-$17.8Bn (consensus of $18.5Bn), Earnings Before Income, Taxes, Depreciation, and Amortization (EBITDA) of $6.0Bn-$6.4Bn (consensus of $7.1Bn), and Free Cash Flow of $2.0Bn-$2.3Bn ($3.5Bn-$3.8Bn excluding cash costs to achieve synergies and other one-time items). That said, the company reiterated that 2021 represents the trough year for the business given a number of one-off headwinds that are expected to decline rapidly over the next two years. Based on a 25% dividend payout ratio of free cash flow (FCF), the Board expects to approve a dividend of $540M, or $0.44/share (3.3% annualized yield) with the expectation to grow the dividend amount thereafter. Additionally, the company expects to repay $6.5Bn in debt by the end of 2023 and is targeting a long-term leverage ratio of 2.5x.”
In Q4 2020, the number of bullish hedge fund positions on Viatris Inc (NASDAQ:VTRS) stock increased by about 40% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Viatris’ growth potential. Our calculations showed that Viatris Inc (NASDAQ:VTRS) 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.
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