RGA Investment Advisors, an investment management firm, published its first-quarter 2020 investor letter – a copy of which can be downloaded here. In the letter, the fund centered around the positioning of highly levered hedge funds, and discussed the changes in its portfolio. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
RGA Investment Advisors, in its Q1 2021 investor letter, mentioned Twitter, Inc. (NYSE: TWTR), and shared their insights on the company. Twitter, Inc. is a San Francisco, California-based social network company that currently has a $43.4 billion market capitalization. Since the beginning of the year, TWTR delivered a 0.55% return, extending its 12-month gains to 66.92%. As of May 21, 2021, the stock closed at $54.45 per share.
Here is what RGA Investment Advisors has to say about Twitter, Inc. in its Q1 2021 investor letter:
“‘The bird has wings’—Twitter’s quarter started off somewhat ominously, with Twitter the worst performing stock in the S&P 500 following the January 6th insurrection and questions about the stickiness of the userbase after permanently suspending the account of President Trump.8 By the end of the quarter, Twitter was one of the best performers in the index after exceptionally strong fourth quarter earnings and guidance for the year and an upbeat analyst day that highlighted a rapidly evolving product roadmap placing the timeline at the center of ephemeral (fleets), long form (Revue) and voice (Spaces). The improvements to the experience makes the platform more accessible and provides more opportunity to continue growing the userbase. Importantly, Twitter also embraced what we have been calling “creative empowerment” in previewing SuperFollows and a host of features designed to help content creators and contributors monetize their own audience on Twitter itself. These developments, alongside considerable progress on the advertising platform give us growing conviction that Twitter will deliver on its largely untapped opportunity—in other words, the value creation opportunity on top of the low multiple we were able to build our position at. Elliot spoke at length about these developments on Yet Another Value Podcast with Andrew Walker and The Business Brew with Bill Brewster, which we invite you to check out.”
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 -24.67% 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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