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 Pinduoduo Inc. (NASDAQ:PDD) is one of them. Pinduoduo Inc. (NASDAQ:PDD) engages in the development and management of an e-commerce platform. In the last three months, Pinduoduo Inc. (NASDAQ:PDD) stock gained 123.5% and on January 22nd it had a closing price of $171.89. Here is what Tao Value said:
“Pinduoduo (ticker: PDD) reported a very strong Q3 2020, beating key KPIs all-around (GMV, active buyers & Revenue). It even surprisingly recorded the first non-GAAP profit (RMB466 million). Yet, the more important development is Duoduo Maicai, a new fresh grocery initiative. It is a natural extension of Pinduoduo’s deep root in agriculture e-commerce, and I think the logistic expertise it accumulated over years should help them compete. It is also a very nascent market, which attracts other tech giants (including Meituan & Alibaba). I will watch very closely on the developments.”
In November 2020, we published an article revealing that Pinduoduo Inc. (NASDAQ:PDD) was present in the list of 10 best growth stocks to buy now according to billionaire Ray Dalio.
In Q3 2020, the number of bullish hedge fund positions on Pinduoduo Inc. (NASDAQ:PDD) stock increased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Pinduoduo’s growth potential. Our calculations showed that Pinduoduo Inc. (NASDAQ:PDD) 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.