Vulcan Value Partners, an exclusive investment vehicle for all public equity investments, published its ‘Large Cap Composite’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A gross return of 7% was recorded by the fund for the Q3 of 2020, above its Russel 1000 Value Index benchmark that returned 6.8% but below S&P 500 that returned 8.9%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Vulcan Value Partners, in their Q3 2020 Investor Letter said that they exited their position in NVIDIA Corporation (NASDAQ: NVDA) when its stock price reached their estimated fair value. NVIDIA Corporation is a global technology company that currently has a $318 billion market cap. For the past 3 months, NVIDIA Corporation delivered a -4.73% return and settled at $514.38 per share at the closing of January 15th.
Here is what Vulcan Value Partners has to say about NVIDIA Corporation in their Investor Letter:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. During the first quarter of 2019, its stock price declined considerably due to the combination of three factors. A capital spending hiatus by cloud providers, the collapse in demand for cryptocurrency mining, along with the end of the product cycle in its most recent gaming chip caused NVIDIA to miss its quarterly earnings estimates. As a result, we were given the opportunity to purchase NVIDIA with a significant margin of safety in March of 2019. NVIDIA’s value grew substantially while we owned it, and we continued to follow our discipline by trimming and adding to the company as its price fluctuated. We exited NVIDIA when its stock price rose close to our estimate of fair value. The combination of its value growth and the closing of the price to value gap provided substantial returns over our investment period.”
Last November 2020, we published an article telling that NVIDIA Corporation (NASDAQ: NVDA) was in 82 hedge funds’ portfolio. Its all time high statistics is 95. NVDA delivered a huge 106.35% return in the past 12 months.
Our calculations showed that NVIDIA Corporation (NASDAQ: NVDA) does not belong to 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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