Mattel (MAT) Has Risen 9% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Longleaf Partners top stock picks. Longleaf Partners, an investment management firm, is bullish on Mattel Inc (NASDAQ:MAT) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Mattel Inc (NASDAQ:MAT) stock. Mattel Inc (NASDAQ:MAT) is a toy company.

On July 9, 2019, Longleaf Partners had released its Q2 2019 investor letter. The investment firm said that Mattel Inc (NASDAQ:MAT) stock was the fund’s one of the largest detractors in the second quarter of 2019. The stock has posted a return of 8.4% in the trailing one year period, underperforming fund’s benchmark the S&P 500 Index which returned 14.2% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Mattel Inc (NASDAQ:MAT) stock has risen by 20.6%.

Longleaf Partners fund posted a return of -2.9% in the second quarter of 2019, underperforming fund’s benchmark the S&P 500 Index which returned 4.3% in the same period. Let’s take a look at comments made by Longleaf Partners about Mattel Inc (NASDAQ:MAT) stock in the Q2 2019 investor letter.

“Mattel (-14%, -0.80%), the toy company, declined during the quarter due to fears over litigation related to the Fisher Price Rock N’ Play sleeper recall. The stock bounced back briefly with the catalyst of a takeover offer by Isaac Larian, the CEO of MGA Entertainment, but retreated when the offer proved to be an insincere approach that was withdrawn. Mattel CEO Ynon Kriez made progress with the announcements of licensing agreements with Pixar, Warner Bros. Entertainment and Sanrio (Hello Kitty) during the quarter. Ongoing cost cutting initiatives are ahead of initial plans.”

In April, we published an article revealing Longleaf Partners bullish investment thesis on Mattel Inc (NASDAQ:MAT) stock in its Q1 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Mattel Inc (NASDAQ:MAT).

In Q1 2020, the number of bullish hedge fund positions on Mattel Inc (NASDAQ:MAT) stock decreased by about 11% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Mattel’s growth potential. Our calculations showed that Mattel Inc (NASDAQ:MAT) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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.