This Hedge Fund Sold Qiwi Plc (QIWI) Amid Regulatory Concerns

Horos Asset Management recently published its Q4 Investor Letter, which can be downloaded here. A return of 26.3% was recorded by the fund for the Q4 of 2020, outperforming its benchmark index that delivered an 11.9% return.

Horos Asset Management said in their letter that they sold Qiwi Plc (NASDAQ: QIWI) because of the uncertainties they observed within the company. Qiwi plc is a Russian payment service company that currently has a $741.2 million market cap. For the past 3 months, QIWI delivered a -26.22% return and settled at $10.98 per share at the closing of February 8th.

Here is what Horos Asset Management has to say about Qiwi plc in their Q4 2020 investor letter:

“As for Qiwi, we divested our position in two phases. First, we drastically trimmed it to only 1% of the fund after the company’s latest earnings report. Despite the excellent numbers released, the management team became very cautious due to some regulatory threats that they saw on the horizon, which could affect (in the worst-case scenario) the betting segment of its payments business— a very important source of cash flow for the company. On top of this, there were the continuous attempts by the management team to sell shares every time the stock approached 20 dollars, sending a clear message about its future prospects for the business. Second, in mid-December the banking regulator ordered restrictions on foreign transfers, as well as on the reloading of prepaid cards provided by the company, in an attempt to tighten its money laundering control policy. In the face of this uncertainty, we decided to sell the remainder of our Qiwi position, as we believe that the risk-return trade-off has deteriorated sharply.”

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Last December, we published an article telling that Qiwi Plc (NASDAQ: QIWI) was in 9 hedge fund portfolios. Its all time high statistics is 15. QIWI delivered a -41.61% return in the past 12 months.

Our calculations show that Qiwi Plc (NASDAQ: QIWI) 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.