Should You Be Tempted To ‘Sell’ Ashford (AINC) Stock

If you are looking for the best ideas for your portfolio you may want to consider some of Tao Value’s top stock picks. Tao Value, an investment management firm, is bearish on Ashford Inc. (NYSEAMERICAN:AINC) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Ashford Inc. (NYSEAMERICAN:AINC) stock. Ashford Inc. (NYSEAMERICAN:AINC) provides asset management and advisory services to other entities, primarily within the hospitality industry. The stock is down 54.8% since Tao Value’s pitch. Tao Value said the following in the letter:

“We exited one of our worst performing positions – Ashford Inc. (AINC). The thought process for such decision was simple. The continued price drop made the position an immaterial one. Since I have a process of not owning immaterial positions, I must choose between 1) make it material (i.e. buy more), or 2) exit it. After revisiting our initial thesis, I believe we understudied CEO Monty Bennett’s incentive in his broader personal wealth context. The lesson is somewhat like what we learned from YY’s Bigo acquisition. When the owner of a public company owns other businesses, they could unfairly transfer the public company’s value to themselves by manipulating terms of the deals between the public entity and their other entities.”

Ryman Hospitality RHP Gaylord Luxury Hotel

Our calculations showed that Ashford Inc. (NYSEAMERICAN:AINC) 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 leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. 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.