Should You Consider Investing in KT Corporation (KT)?

Bonhoeffer Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 13.8% was recorded by the fund for the Q1 of 2021, compared to 4.2% and 8.1% returns of the MSCI World ex-US and the DFA International Small Cap Value Fund, respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Bonhoeffer Capital Management, in its Q1 2021 investor letter, mentioned KT Corporation (NYSE: KT), and shared their insights on the company. KT Corporation is a Seongnam-si, South Korea-based telecommunications company that currently has a $6.2 billion market capitalization. Since the beginning of the year, KT delivered an 18.76% return, extending its 12-month gains to 34.65%. As of May 06, 2021, the stock closed at $13.06 per share.

Here is what Bonhoeffer Capital Management has to say about KT Corporation in its Q1 2021 investor letter:

“For one of our telecom holdings, KT Corp, we are seeing signs of corporate actions (such as spinoff and JVs) in both foreign comparables (as described above for TI) and domestic competitors like SK Telecom, which recently announced spinoff plans for its non-telecom assets. As mentioned previously, KT has a treasure trove of non-telecom assets, like real estate and media content, that could be spun off. KT has also announced a share buyback of 5% of its stock and returning 50% of its net profits as dividends to shareholders, in addition to investing in growth strategies. In my opinion, these changes are not reflected in the current stock price.”

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Our calculations show that KT Corporation (NYSE: KT) 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, KT Corporation was in 11 hedge fund portfolios, compared to 10 funds in the third quarter. KT delivered a 25.94% 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.