Lookback: Miller Value Partners 2019 Carlyle Group (CG) Thesis

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Carlyle Group Inc. (NASDAQ:CG) stock. In its Income Strategy Q3 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Carlyle Group Inc. (NASDAQ:CG) stock. Carlyle Group Inc. (NASDAQ:CG) is a private equity company.

On October 21, 2019, Miller Value Partners had released its Income Strategy Q3 2019 investor letter. The investment firm said that Carlyle Group Inc. (NASDAQ:CG) was one of the biggest contributors to its performance in Q3 2019. Carlyle Group Inc. (NASDAQ:CG) stock has posted a return of -3.7% in the trailing one year period, underperforming the S&P 500 Index which returned 15.1% in the same period. This suggests that the investment firm was wrong in its decision.

Miller Income Strategy fund posted a return of 2.69% in the third quarter of 2019, outperforming the S&P 500 Index which returned 1.87% in the same quarter. Let’s take a look at comments made by Miller Value Partners about Carlyle Group Inc. (NASDAQ:CG) stock in the Q3 2019 investor letter.

“Carlyle Group (CG) advanced 15.21% during the period after reporting core distributable earnings of $0.35, just below consensus of $0.37. Fee-related earnings of $133M topped estimates while net realized performance revenues were lower than expected at $21M. Assets Under Management (AUM) of $222.7B came in +55 basis points sequentially with net accrued carry +5% to $1.9B. Management announced plans to convert to a C-corp effective January 1st, 2020 and move to a single share class structure that will pay $1.00/share in fixed annual dividends (3.9% annualized yield).”

In September 2020, we published an article revealing Miller Value Partners’ bullish investment thesis on Carlyle Group Inc. (NASDAQ:CG) stock in its Q2 2019 investor letter. This suggests that the investment firm has been bullish for a long time on Carlyle Group Inc. (NASDAQ:CG).

In Q1 2020, the number of bullish hedge fund positions on Carlyle Group Inc. (NASDAQ:CG) stock increased by about 23% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Carlyle’s growth potential. Our calculations showed that Carlyle Group Inc. (NASDAQ:CG) 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.