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 Synnex Corp (NYSE:SNX) is one of them. Synnex Corp (NYSE:SNX) provides B2B IT services. In the last one year, Synnex Corp (NYSE:SNX) stock gained 17.9% and on January 11th it had a closing price of $87.69. Here is what Greenlight Capital said:
“Historically an IT hardware distributor, SNX began scaling a Business Process Outsourcing (BPO) division in 2014 through a series of acquisitions. Both business segments have attractive organic growth prospects, strong management and good reputations with customers. In January, SNX announced it would spin off the BPO business in the second half of the year. We believe the spin-off will create significant value for shareholders. While IT hardware distributors have low margins and trade at below market P/E multiples, established BPOs have higher margins and trade at premium P/E multiples. We believe the spin-off will reveal that the sum of the parts is worth more than the whole. We acquired our shares at an average entry price of $126.29, or just over 10x FY2021 consensus earnings per share. SNX shares ended the quarter at $140.06.”
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In Q2 2020, the number of bullish hedge fund positions on Synnex Corp (NYSE:SNX) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Synnex Corp (NYSE:SNX) 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.
