FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
FAM Funds, in their Q4 2020 Investor Letter said that they acquired a position in ONE Gas, Inc. (NYSE: OGS), and continuously holds the company while enjoying its solid earnings. ONE Gas, Inc. is a public natural gas utility company that currently has a $3.8 billion market cap. For the past 3 months, OGS delivered a 6.46% return and settled at $73.05 per share at the closing of January 28th.
Here is what FAM Funds has to say about ONE Gas, Inc. in their investor letter:
“Later in March, we opened a new position in ONE Gas (OGS), the natural gas utility for most of Kansas, Oklahoma, and parts of Texas. From our viewpoint, OGS is a solid operator with strong management (we have met with them several times over the years). After the decline, the price was low enough that, in our opinion, their nice dividend plus reasonable growth should lead to solid shareholder returns in just about any economic scenario. Since our purchase, they reported solid earnings.”
Copyright: Elnur / 123RF Stock Photo
Last December 2020, we published an article telling that ONE Gas, Inc. (NYSE: OGS) was in 19 hedge fund portfolios. Its all time high statistics is 20. OGS delivered a -22.22% return in the past 12 months.
Our calculations show that ONE Gas, Inc. (NYSE: OGS) 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
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. 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.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
