Mittleman Investment Management LLC, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 31% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.1% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Miller Value Partners, in their Q4 2020 Investor Letter, said that Revlon, Inc. (NYSE: REV) was a top contributor for their portfolio in the fourth quarter of 2020. Revlon, Inc. is a cosmetics company that currently has a $590.3 million market cap. For the past 3 months, REV delivered a 16.16% return and settled at $11.07 per share at the closing of February 12th.
Here is what Miller Value Partners has to say about Revlon, Inc. in their Q4 2020 investor letter:
“Revlon was covered at length in our Q3 Investment Review and fortunately my prediction that Ron Perelman would assist their refinancing needs did in fact play out favorably, so the junior bonds that I referenced in that letter went from under $30 to par ($100), and the stock had a similar percentage move before pulling back a bit. So, here’s a case where the entire capital structure was priced assuming a $0 outcome for the equity, but the experts failed to properly price the Perelman factor. The lesson: the price of a company’s debt is not always more accurate or instructive than the price of its equity. Anyway, Revlon still has a lot of work to do to get out of the woods completely, but they are getting there. The sale of a royalty stream that they had been getting from Helen of Troy (HELE) for primarily Revlon hair dryers was an unexpected $72M in cash announced on Dec. 22nd . I think other discrete chunks of value like that will be realized soon (for example, American Crew men’s hair styling products (major market share in mass market and salons, globally), probably worth $200M to $300M), if the entire company is not sold.”
Last December, we published an article telling that Revlon, Inc. (NYSE: REV) was in 32 hedge fund portfolios. Its all time high statistics is 38. REV delivered a -44.40% return in the past 12 months.
Our calculations show that Revlon, Inc. (NYSE: REV) 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
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Disclosure: None. This article is originally published at Insider Monkey.
