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 Progressive Corp (NYSE:PGR) is one of them. Progressive Corp (NYSE:PGR) is an insurance company. In the last three months, Progressive Corp (NYSE:PGR) stock lost 1.3% and on March 3rd it had a closing price of $88.86. Here is what the fund said:
“Progressive was one of the few companies that benefited significantly from lockdowns. People drove less and got into fewer accidents, but kept paying their car insurance bills. Like most of the major auto insurers, Progressive kicked some of those gains back to customers through rebates, but still increased earnings per share by 42%, leading to a 41.5% return for the stock. And in the mirror image of the banks, those excess gains will revert once drivers are on the roads again.”
In Q3 2020, the number of bullish hedge fund positions on Progressive Corp (NYSE:PGR) stock decreased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Progressive’s growth potential. Our calculations showed that Progressive Corp (NYSE:PGR) 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.