If you are looking for the best ideas for your portfolio you may want to consider some of Wedgewood Partners top stock picks. Wedgewood Partners, an investment management firm, is bullish on Apple Inc. (NASDAQ:AAPL) stock. In its Q3 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Apple Inc. (NASDAQ:AAPL) stock. Apple Inc. (NASDAQ:AAPL) is a technology company.
In October 2019, Wedgewood Partners had released its Q3 2019 investor letter. The investment firm said that Apple Inc. (NASDAQ:AAPL) was one of the biggest contributors to its performance in Q3 2019. The stock has posted a return of 79.3% in the trailing one year period, outperforming the S&P 500 Index which returned 14.4% in the same period. This suggests that the investment firm was right in its decision.
Last month, we published an article revealing Wedgewood Partners bullish investment thesis on Apple Inc. (NASDAQ:AAPL) stock in its Q3 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Apple Inc. (NASDAQ:AAPL).
Wedgewood Partners fund posted a return of 0.39% in the third quarter of 2019, underperforming the S&P 500 Index which returned 1.87% in the same quarter. Let’s take a look at comments made by Wedgewood Partners about Apple Inc. (NASDAQ:AAPL) in the Q3 2019 investor letter.
“Apple grew revenues 4% constant currency, driven by 18% adjusted growth in its services business which has generated nearly $45 billion in revenues over the trailing four quarters, and 50% growth in wearables and accessories. We expect Apple’s consolidated revenues will accelerate over the next 12 to 18 months as they complete the development of 5G-capable mobile devices. Despite a quickly growing, high-margin software franchise, Apple continues to trade at undemanding earnings multiples.”
In Q2 2020, the number of bullish hedge fund positions on Apple Inc. (NASDAQ:AAPL) stock increased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Apple’s growth potential. Our calculations showed that Apple Inc. (NASDAQ:AAPL) is ranked #11 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
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets. Tesla’s stock price skyrocketed, yet lithium prices are still below their 2019 highs. So, we are checking out this lithium stock right now. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.