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Should Investors Buy the Dip in JOYY (YY) Stock?

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 Joyy Inc. (NASDAQ:YY) is one of them. Joyy Inc. (NASDAQ:YY) operates as a global social media platform. Year-to-date, Joyy Inc. (NASDAQ:YY) stock gained 42.9% and on July 29th it had a closing price of $76.32. Here is what Tao Value said:

“JOYY (ticker: YY) gained 66% in the past quarter. Main highlight is the fruition from the successful international expansion of entertaining live streaming model (Bigo). Bigo segment reported quarter revenue of 2.1b RMB, which is on par with the domestic YY Live segment, yet still on a 99% YoY growth trajectory. Management also commented that they could monetize effectively (sharing 45% revenue with hosts, lower than domestic practices) due to lack of competition. On short form video side (Likee), it seems like management conceded to the mighty TikTok and will focus on differentiated markets & segments.”

In Q1 2020, the number of bullish hedge fund positions on Joyy Inc. (NASDAQ:YY)  stock decreased by about 35% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Joyy’s growth potential. Our calculations showed that Joyy Inc. (NASDAQ:YY)  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.