Oakmark Select Fund: ‘Qurate (QRTEA) is not Attractive Enough’

Oakmark Select Fund, an investment advisory firm that provides asset and wealth management published its third-quarter 2020 Investor Letter – a copy of which can be seen here. A return of 5.2% was recorded by the fund for the 3rd Quarter of 2020, trailing below its S&P 500 benchmark that returned 8.9%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Oakmark Select Fund, in their Q3 2020 Investor Letter said that they were able to distinguish the value of Qurate Retail, Inc. (NASDAQ: QRTEA) and initiated sold their position in the company. Qurate Retail, Inc. is a media conglomerate that currently has a $4.9 billion market cap. For the past 3 months, QRTEA delivered a 56.69% return and settled at $11.83 per share at the closing of January 15th.

Here is what Oakmark Select Fund has to say about Qurate Retail, Inc. in their Investor Letter:

“We eliminated our position in Qurate Retail during the quarter. The company is still selling at a discount to our estimate of its intrinsic value; however, that discount has narrowed as its stock price benefitted from the increase in online shopping during the quarantine. As such, we don’t believe the stock is attractive enough to merit holding in a concentrated portfolio.”

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Last December 2020, we published an article telling that Qurate Retail, Inc. (NASDAQ: QRTEA) was in 41 hedge funds’ portfolio, almost making to its all time high statistics of 43. Qurate Retail, Inc. delivered a 132.76% return for the past 12 months.

Our calculations showed that Qurate Retail, Inc. (NASDAQ: QRTEA) 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.