GDS Investments, an investment management firm, published its year-end investor letter – a copy of which can be seen here. In the letter, the fund talked about the negative impact brought about by the pandemic and how it affected the market as a whole. GDS mentioned that their focus will be on companies that can positively absorb the effects of the rising inflation and reduced monetary policy. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.op 5 holdings to have a peek at their top bets for 2021.
GDS Investments, in their Q4 2020 investor letter, mentioned Twitter, Inc. (NYSE: TWTR) and emphasized their views on the company. Twitter, Inc. is a California-based social network company. It currently has a $51.7 billion market capitalization. Since the beginning of the year, TWTR delivered a 19.72% return, extending its 12-month gains to 142.08%. As of March 10, 2021, the stock closed at $64.83 per share.
Here is what GDS Investments has to say about Twitter, Inc. in their Q4 2020 investor letter:
“GDS Investments’ portfolio still includes Twitter, Inc. (NYSE: TWTR). This major participant in the on-line communications space should accelerate its creation of long-term value with user growth, improved monetization per user, and enhanced governance through the stake which Elliot Management and Silverlake Partners now hold. Though the former Tweeter-in-Chief is now silenced on the platform, with Average Revenue per User of approximately $25.00 (but with sizeable opportunities to increase) and recent user growth of more than 29%, the company’s future is bright. The gathering all in one space of leaders from multiple sectors (sports, politics, business, education) allows the company to serve as a hub for information exchange while exploring and realizing its full potential.”
Our calculations show that Twitter, Inc. (NYSE: TWTR) 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, Twitter, Inc. was in 78 hedge fund portfolios, compared to 75 funds in the third quarter. TWTR delivered a 26.60% 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.
