Is Power REIT (PW) A Smart Long-Term Buy?

Horos Asset Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 21.5% was delivered by the Horos Value Internacional Fund for the Q1 of 2021, outperforming the Index, which appreciated 8.9% for the same period. The Horos Value Iberia returned 13.0%, beating the 5.4% rise of its benchmark  You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Horos Asset Management, in its Q1 2021 investor letter, mentioned Power REIT (NYSE: PW), and shared their insights on the company. Power REIT is a US-based real-estate investment trust that currently has a $129.1 million market capitalization. Since the beginning of the year, PW delivered a 41.18% return, extending its 12-month gains to 82.62%. As of May 17, 2021, the stock closed at $37.71 per share.

Here is what Horos Asset Management has to say about Power REIT in its Q1 2021 investor letter:

“The second new position we have initiated during the period is Power REIT, a US company that has made a 180-degree change to its business model with the arrival of its new CEO and main shareholder, David Lesser. Specifically, Power REIT was
historically dedicated to operating a very long-term railway concession, but with the arrival of Lesser, they changed their focus to concentrate on investing in renewable assets and, especially, in greenhouses for the cultivation of cannabis for medicinal purposes. Precisely, greenhouses are the main attraction of this investment. The reason? As they are slowly being legalized, with the added bonus of the bad press they may still have, there is not a well-developed market for f0inancing this type of project. Power REIT is taking advantage of this situation to acquire greenhouses and then rent them out for long term operation, earning high returns in the process. At the time of our investment, the company had very promising growth opportunities, which will materialize over the next few months. In this sense, the capital raise carried out in January contributes to achieving these goals, while creating significant shareholder value.”

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Our calculations show that Power REIT (NYSE: PW) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Power REIT was in 1 hedge fund portfolio. PW delivered a -22.36% return in the past 3 months.

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