If you are looking for the best ideas for your portfolio you may want to consider some of Palm Valley Capital Management’s top stock picks. Palm Valley Capital, an investment management firm, is bullish on Protective Insurance Corp (NASDAQ:PTVCB) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Protective Insurance Corp (NASDAQ:PTVCB) stock. Protective Insurance Corp (NASDAQ:PTVCB) provides insurance for the transportation industry.
On July 1, 2019, Palm Valley Capital had released its Q2 2019 investor letter. The investment firm said that Protective Insurance Corp (NASDAQ:PTVCB) was one of the ten equities that the fund held in Q2 2019. The stock has posted a return of -10.1% in the trailing one year period, underperforming fund’s benchmark the S&P Small Cap 600 Index which returned -2.2% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Protective Insurance Corp (NASDAQ:PTVCB) stock has fallen by 10.2%.
Palm Valley Capital fund posted a return of 0.7% from April 30, 2019 through June 30, 2019, outperforming fund’s benchmark the S&P Small Cap 600 Index which returned -1.9% in the same period. Let’s take a look at comments made by Palm Valley Capital about Protective Insurance Corp (NASDAQ:PTVCB) in the Q2 2019 investor letter.
“Protective Insurance is a leading commercial trucking insurer and works with customers such as FedEx and smaller outfits. Challenges in the commercial auto market in recent years due to rising jury awards for accidents have impacted the industry and disrupted Protective’s long history of stable underwriting performance. The company is raising premiums to address the unfavorable litigation environment. Protective trades at a significant discount to its tangible book value.”
In Q1 2020, the number of bullish hedge fund positions on Protective Insurance Corp (NASDAQ:PTVCB) stock decreased by about 38% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Protective Insurance’s growth potential. Our calculations showed that Protective Insurance Corp (NASDAQ:PTVCB) isn’t ranked 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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Disclosure: None. This article is originally published at Insider Monkey.