Tao Value recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 26.43% for the quarter, outperforming its benchmark, the MSCI All Country World Index (ACWI) which returned 14.4% in the same quarter. You should check out Tao Value’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, Tao Value highlighted a few stocks and Palantir Technologies Inc. (NYSE:PLTR) is one of them. Palantir Technologies Inc. (NYSE:PLTR) is a software company. In the last three months, Palantir Technologies Inc. (NYSE:PLTR) stock gained 223.9% and on January 25th it had a closing price of $36.23. Here is what Tao Value said:
“Palantir is a new “Opportunistic” position. Government & Military works are mission critical and require fundamentally different design and execution than consumer tech. Take prediction modeling for example, consumer tech solutions (e.g. lending, shopping recommendations) largely try to minimize error on average, yet such prediction would be useless if not dangerous for military missions. On the way to is public market, Palantir seemed to get controversies over its “unethical” collaboration with ICE and its scalability (as customers need significant customization in implementation & support). By my evaluation though, I think founder CEO Alex Karp is a thoughtful leader and the ethics arguments were overblown. Although the operating metrics will not be as good as traditional SaaS, I see the customization as a necessity and rather a source of switching cost moat. Additionally, competitors seem to be yielding market shares to Palantir due to ideological biases. I saw Palantir as a unique asset and decided to build a small position right after its underwhelming direct listing debut.”
Last week, we published an article revealing that Palantir Technologies Inc. (NYSE:PLTR) was one of the 10 best software stocks to buy now.
Our calculations showed that Palantir Technologies Inc. (NYSE:PLTR) 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.