Miller Value Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 13.01% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 8.93% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the said letter, Miller Value Partners highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) is one of them. Alibaba Group Holding Limited (NYSE:BABA) is an e-commerce company. Year-to-date, Alibaba Group Holding Limited (NYSE:BABA) stock gained 43.7% and on October 30th it had a closing price of $304.69. Here is what Miller Value Partners said:
“Alibaba Group (BABA) climbed 35.5% over the period despite the continued escalation in US/China relations. The company reported better-than-expected 1Q fiscal year 2021 (FY21) results. Total revenues came in at Rmb 153.8B versus consensus of Rmb 148.1B with EBITDA coming in at Rmb 51.0B versus Rmb 45.2B expected leading to earnings per share (EPS) of Rmb 14.82 versus Rmb 13.79. Annual active customers hit 742m (10% Year-over-Year (YoY)) with mobile monthly active users reaching 874m (16% YoY). Alibaba’s fintech arm, Ant Group, filed paperwork in Hong Kong for an Initial Public Offering with expectations of valuation reaching $280B. Founder Jack Ma disclosed he cut his stake in the company from 6.4% to 4.8% over the past year. The company finished out the quarter with its annual investor day that focused on progress the company has made outside its core commerce offering, specifically its cloud offering.”
In Q2 2020, the number of bullish hedge fund positions on Alibaba Group Holding Limited (NYSE:BABA) stock decreased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Alibaba’s growth potential. Our calculations showed that Alibaba Group Holding Limited (NYSE:BABA) is ranked #4 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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