Should You Be Tempted To ‘Sell’ Lemonade (LMND) Stock

Miller Value Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 13.01% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 8.93% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Miller Value Partners highlighted a few stocks and Lemonade Inc. (NYSE:LMND) is one of them. Lemonade Inc. (NYSE:LMND) is an insurance company. Lemonade Inc. (NYSE:LMND) stock lost 13.6% in the last three months and on October 30th it had a closing price of $50.29. Here is what Miller Value Partners said:

“Lemonade, Inc. (LMND) returned 106.5% during period as we both entered and exited the name. We purchased the name on the IPO which we viewed as fairly priced for the large opportunity it is going after. While we are still attracted to the strategy and large total addressable market, we felt that the large move following the IPO was pricing in very high expectations for a young company, so we decided to lock-in our return.”

Our calculations showed that Lemonade Inc. (NYSE:LMND) 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

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