Greenlight Capital Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 5.9% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Greenlight Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Greenlight Capital highlighted a few stocks and NCR Corp (NYSE:NCR) is one of them. NCR Corp (NYSE:NCR) is a software company. In the last one year, NCR Corp (NYSE:NCR) stock gained 6.6% and on January 11th it had a closing price of $36.76. Here is what Greenlight Capital said:
“NCR sells and services ATMs, self-checkout terminals and other point-of-sale terminals to banks, retailers and restaurants. In 2018, new management embarked on a multi-year strategy to convert its perpetual license software sales to a recurring “software as a service” fee model. Earlier this year, the stock dropped by more than 50% as the pandemic caused many of NCR’s customers to defer purchases. However, many of its customers, including mass merchants, grocers, convenience stores, gas stations and quick-service restaurants, have held up well this year. Over the long term, we believe NCR is well-positioned as banks and stores shift activity from human tellers and cashiers to more ATMs and self-checkout options. We expect outsized earnings growth in 2021 due to both pent-up customer demand as well as further progress on management’s strategic initiatives. We purchased our shares at $18.89, or around 8x consensus 2021 EPS estimates. The shares ended the quarter at $22.14.”
Last week, we published an article revealing that FPA Capital Fund is bullish on NCR Corp (NYSE:NCR) stock. The investment firm said the company is in the process of shifting further away from its historical hardware focus to higher margin recurring software-as-a-service products.
In Q3 2020, the number of bullish hedge fund positions on NCR Corp (NYSE:NCR) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that NCR Corp (NYSE:NCR) 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.