Merion Road Capital Management, an investment management firm, published its fourth-quarter 2020 Investor Letter for its ‘MRCM Long Short Small Cap’ and ‘MRCM Long Only Large Cap’– a copy of which can be downloaded here. A return of 11.5% was recorded by its Long Short Small Cap fund for the Q4 of 2020, outperforming its Barclay Hedge Fund index that made a 9% return, but below its Russell 2000 benchmark that delivered 31.3%. Its Long Only Large Cap fund delivered a 21.2% return, above its S&P 500 benchmark that accumulated 12.1%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Merion Road Capital Management, in their Q4 2020 Investor Letter, said that Four Corners Property Trust, Inc. (NYSE: FCPT) was a large detractor for them during the year 2020. Four Corners Property Trust, Inc. is a real estate investment trust (REIT) that currently has a $2 billion market cap. For the past 3 months, FCPT delivered a -1.63% return and settled at $27.78 per share at the closing of February 11th.
Here is what Merion Road Capital Management has to say about Four Corners Property Trust, Inc. in their Q4 2020 investor letter:
“Four Corners (“FCPT”) was a large detractor for the year as I completely exited our position in March. As a REIT, FCPT operates with relatively high leverage (though within the REIT universe FCPT is conservatively financed). This perceived risk was heightened by their focus on restaurant properties. Retrospectively I should have held or added to our exposure. But part of my job is risk management, and I simply did not feel comfortable holding it given the uncertainties at the time.”
Last December, we published an article telling that Four Corners Property Trust, Inc. (NYSE: FCPT) was in 13 hedge fund portfolios. Its all time high statistics is 25. PDEX delivered a -12.92% return in the past 12 months.
Our calculations show that Four Corners Property Trust, Inc. (NYSE: FCPT) 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.
