Junto Investments, a recently founded investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A return of 38.26% was recorded by the fund for the year end 2020, outperforming both its S&P 500 benchmark that returned 18.79% and MSCI World Index with a 17.42% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Junto Investments, in their Q4 2020 Investor Letter said that they acquired a position in General Motors Company (NYSE: GM), and so far its paying off bigtime. General Motors Company is a vehicle manufacturing company that currently has a $73 billion market cap. For the past 3 months, GM delivered a decent 46.29% return and settled at $51.04 per share at the closing of January 28th.
Here is what Junto Investments has to say about General Motors Company in their investor letter:
“General Motors was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and the company is worth a whole lot more than is still reflected in the market.”
Last December 2020, we published an article telling that General Motors Company (NYSE: GM) was in 60 hedge fund portfolios. Its all time high statistics is 88. GM delivered a 53.14% return in the past 12 months.
Our calculations show that General Motors Company (NYSE: GM) does not belong in our list of 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.