Is Liberty Latin America (LILA) Stock a Buy For 2021?

Silver Ring Value Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 26.6% for the last 12 months (net), outperforming its benchmark, the Russell 3000 Index which returned 20.9% in the same period. You should check out Silver Ring Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, Silver Ring Value Partners’ highlighted a few stocks and Liberty Latin America Ltd. (NASDAQ:LILA) is one of them. Liberty Latin America Ltd. (NASDAQ:LILA) operates as a telecommunication company. In the last three months, Liberty Latin America Ltd. (NASDAQ:LILA) stock gained 11.4% and on January 19th it had a closing price of $11.44. Here is what Silver Ring Value Partners’ said:

“Business Vision in 5 Years: The company successfully integrated the AT&T acquisition in Puerto Rico, leading to a much more profitable and competitively advantaged business able to seamlessly offer the “quad-play” (wireless, data, landline phone and TV). It has completed a few other deals, in each case paying careful attention to price and strategic fit. The low data penetration rates allowed the company to grow much faster than more mature U.S. and EU peers, especially after the COVID pandemic highlighted the importance of data to consumers.

What Can Prevent It From Getting There:

• Government regulation hurts the economics of its businesses

• Competitive intensity, especially in markets like Chile, with several competitors, flares up and competes away the benefit of market growth

• A prolonged recession in Latin America leads government to nationalize some of the businesses.”


Earlier this month, we published an article revealing that Clark Street Value sold its position in Liberty Latin America Ltd. (NASDAQ:LILA) stock. Clark Street Value is an individual investor that is focused on finding value and special situation investments.

In Q3 2020, the number of bullish hedge fund positions on Liberty Latin America Ltd. (NASDAQ:LILA) stock increased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in LILA’s growth potential. Our calculations showed that Liberty Latin America Ltd. (NASDAQ:LILA) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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

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Disclosure: None. This article is originally published at Insider Monkey.