Tidefall Capital Management LP, a concentrated, unconstrained investment fund, published its third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 25.40% was recorded by the fund for the 3rd Quarter of 2020, ahead of its S&P 500 benchmark that returned 8.9%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Tidefall Capital Management in their Q3 2020 Investor Letter said that they were able to distinguish a value in Netflix, Inc. (NASDAQ: NFLX). Netflix, Inc. is social networking service company that currently has a $220 billion market cap. For the past 3 months, NFLX delivered a -6.18% return and settled at $497.98 per share at the closing of January 15th.
Here is what Tidefall Capital Management has to say about Netflix, Inc. in their Investor Letter:
“In late February, Netflix introduced a Top 10 row to its user interface. Although a simple change, it
eliminated the paradox of choice for users and greatly diminished the common complaint that “there’s
nothing good on Netflix”. The global distribution that Netflix is able to offer creators is unprecedented,
unrivaled and allows for a massive flywheel effect. Netflix only has a slight lead in subscribers over
Amazon Prime, but nearly five times the engagement. The Top 10 list is creating a global ‘water
cooler’ effect; if you want to be a part of the conversation, you must have Netflix.
Valuation is a sticking point for many investors on Netflix. However, it’s important to remember that
founder Reed Hastings is playing a longer game than the hired executives at many of the new
streaming competitors. At $13 per month, with 2.5 hours per day of viewership, over two accounts, the
cost of Netflix is less than 9 cents per hour.”
Last November 2020, we published an article telling that Netflix, Inc. (NASDAQ: NFLX) was in 230 hedge funds’ portfolio, its all time high statistics. Netflix, Inc. delivered a 46.61% return in the past 12 months.
Our calculations showed that Netflix, Inc. (NASDAQ: NFLX) 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.