Take Profit Season for Estée Lauder (EL)?

Cooper Investors, an investment management firm, published its ‘Cooper Investors Global Equities Fund (Hedged)’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 9.96% was recorded by the fund for the Q4 of 2020, below its MSCI ACWI benchmark that returned 12.24%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Cooper Investors, in their Q4 2020 Investor Letter said that they took profits and sold their position in The Estée Lauder Companies Inc. (NYSE: EL) because they think that the price appreciation of the company is only for the short term. The Estée Lauder Companies Inc. is a premier makeup, skin care, fragrance and hair products manufacturing company that currently has a $89 billion market cap. For the past 3 months, WDAY delivered a decent 10.29% return and settled at $235.85 per share at the closing of January 27th.

Here is what Cooper Investors has to say about The Estée Lauder Companies Inc. in their investor letter:

“Estee Lauder was sold because the business is experiencing a very significant share price appreciation in a short period. We bought this great company earlier in 2020, however Value Latencies appear exhausted – to highlight this point Estee Lauder now trades on 45x Free Cash Flow.”

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Last October 2020, we published an article telling that The Estée Lauder Companies Inc. (NYSE: EL) was in 46 hedge fund portfolios. Its all time high statistics is 50. EL delivered a 23.82% return in the past 12 months.

Our calculations show that The Estée Lauder Companies Inc. (NYSE: EL) does not belong in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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