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 Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), and they were able to buy its shares at an attractive valuation. Ollie’s Bargain Outlet Holdings, Inc. is a chain of discount retail stores that currently has a $6.3 billion market cap. For the past 3 months, OLLI delivered a decent 10.07% return and settled at $97.55 per share at the closing of January 28th.
Here is what FAM Funds has to say about Ollie’s Bargain Outlet Holdings, Inc. in their investor letter:
“In early April, we introduced another new idea — Ollie’s Bargain Outlet Holdings (OLLI). OLLI is an off-price retailer that buys unwanted inventory cheaply from manufacturers and retailers (e.g., end of season extras, label changes, or the inventory of failed stores) and then passes those bargains to consumers through hundreds of modest stores. We long admired OLLI and were pleased to finally be able to buy shares at an attractive valuation. While OLLI was initially impacted by less store traffic, they were considered “essential” and had significant financial strength; therefore, we felt confident they could not only survive but return to growth when conditions improved.”
Last December 2020, we published an article telling that Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) was in 34 hedge fund portfolios, its all time high statistics. OLLI delivered an outstanding 80.26% return in the past 12 months.
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Video: Top 5 Stocks Among Hedge Funds
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