Should You Consider Investing in Eagle Materials Inc. (EXP)?

L1 Capital, an investment management firm, published its ‘L1 Capital International Fund’ first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 15% was recorded by the fund outperforming the benchmark by 8.7%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

L1 Capital International Fund, in its Q1 2021 investor letter, mentioned Eagle Materials Inc. (NYSE: EXP), and shared their insights on the company. Eagle Materials Inc. is a Dallas, Texas-based building material company that currently has a $6.06 billion market capitalization. Since the beginning of the year, EXP delivered a 42.49% return, extending its 12-month gains to 144.14%. As of May 06, 2021, the stock closed at $144.41 per share.

Here is what L1 Capital International Fund has to say about Eagle Materials Inc. in its Q1 2021 investor letter:

“Contributors to the gains were broad based, with the decision to selectively increase exposure to more cyclical sectors such as U.S. housing delivering strong returns. Eagle Materials, a high quality but below the radar building products company, was featured in the December 2020 quarterly report. Pleasingly, the market began to recognise the quality of this business and its strong cashflow and earnings outlook. Its share price increased by 33% during the March 2021 quarter.”


Our calculations show that Eagle Materials Inc. (NYSE: EXP) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Eagle Materials Inc. was in 37 hedge fund portfolios, compared to 31 funds in the third quarter. EXP delivered a 23.07% return in the past 3 months.

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.

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