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Sea Ltd (SE) Benefits from Blazing Gaming Growth

Tao Value recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 36.45% for the quarter, outperforming its benchmark, the MSCI All Country World Index (ACWI) which returned 18.81% in the same quarter. You should check out Tao Value’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Tao Value highlighted a few stocks and Sea Ltd (NYSE:SE) is one of them. Sea Ltd (NYSE:SE) engages in the digital entertainment, e-commerce, and digital financial service businesses. Year-to-date, Sea Ltd (NYSE:SE) stock gained 195.1% and on July 29th it had a closing price of $118.69. Here is what Tao Value said:

“Sea Ltd (ticker: SE) released another strong results for 20 Q1 in May. Gaming business revenue grew by 31%, with healthy active user growth of 48%. E-Commerce business booked 74% y-o-y increase in GMV, yet on a slightly low take rate of 5.1% (compared to 6.3% of 19 Q4) possibly due to relief measures to merchant amid the pandemic. Helped by the acceleration of digital transformation benefiting SE’s all 3 businesses and the overwhelming liquidity injected by government, SE advanced 145% over the quarter.”

This isn’t the first time Tao Value talked about Sea Ltd (NYSE:SE) favorably either. The investment firm has been a long time Sea Ltd (NYSE:SE) bull. Last month, we shared Tao Value’s bullish Sea Ltd (NYSE:SE) thesis in this article.

In Q1 2020, the number of bullish hedge fund positions on Sea Ltd (NYSE:SE)  stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Sea Ltd (NYSE:SE)  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

At Insider Monkey we scour multiple sources to uncover the next great investment idea. 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. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.