Bretton Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 11.52% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 12.15% in the same quarter. You should check out Brown Capital Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, the fund highlighted a few stocks and NVR Inc (NYSE:NVR) is one of them. NVR Inc (NYSE:NVR) is a home construction company. In the last three months, NVR Inc (NYSE:NVR) stock gained 11.8% and on March 3rd it had a closing price of $4,483.85. Here is what the fund said:
“Homebuilder NVR’s stock dropped much more than the rest of the market as conventional wisdom held that an economic collapse wouldn’t exactly set the housing market on fire. But that’s exactly what happened. As the economy held up better than expected with government help, families flocked to the suburbs looking for new homes with more space and took advantage of working from home. Single-family home construction is booming, inventories are at an all-time low, and homebuilders can’t build houses fast enough. As we’ve discussed a number of times, there is a structural shortage of homes in the US, and we expect there to be many years of growth ahead for NVR, even post-Covid. Its stock returned 7.1%, and earnings per share grew 4%.”
In Q3 2020, the number of bullish hedge fund positions on NVR Inc (NYSE:NVR) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in NVR’s growth potential. Our calculations showed that NVR Inc (NYSE:NVR) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.