Harding Loevner, an investment management firm, published its “International Equity” fourth quarter 2020 investor letter – a copy of which can be downloaded here. A net return of 16.28% was recorded by the fund in the fourth quarter of 2020, trailing its MSCI All Country World Ex-US benchmark that delivered a 17.08% return but above its MSCI EAFE Index that had a gain of 16.09% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Harding Loevner, in their Q4 2020 investor letter, mentioned Tencent Music Entertainment Group (NYSE: TME) and shared their insights on the company. Tencent Music Entertainment Group is a Shenzhen, China-based music streaming services provider that currently has a $34.4 billion market capitalization. Since the beginning of the year, TME delivered a 6.50% return, impressively extending its 12-month gains to 102.47%. As of March 31, 2021, the stock closed at $20.49 per share.
Here is what Harding Loevner has to say about Tencent Music Entertainment Group in their Q4 2020 investor letter:
“In China, where Tencent dominate the previously largely freewheeling consumer economy, the situation is more treacherous, if only because of the opaque and unconstrained nature of China’s regulatory authority. By encroaching onto the turf of the state-supported Chinese banking system via their payments platforms, Tencent was “poking the dragon” of politically powerful, entrenched vested interests, and potentially getting their business models signed in the process.”
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Our calculations show that Tencent Music Entertainment Group (NYSE: TME) 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, Tencent Music Entertainment Group was in 26 hedge fund portfolios, compared to 24 funds in the third quarter. TME delivered a 6.61% 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.
