Nelson Roberts Investment Advisors, an employee-owned investment advisory firm that provides asset and wealth management published its third-quarter 2020 Investor Letter – a copy of which can be downloaded here. The Firm’s focal point and target is to maintain a long term value and growth of assets over time. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Nelson Roberts Investment Advisors’ in their Q3 2020 Investor Letter talked about Trane Technologies plc (NYSE: TT). Trane Technologies plc is an industrial manufacturing company that currently has a $35.901 billion market cap. For the past 3 months, TT delivered a 13.95% return and settled at $149.51 per share at the closing of January 15th.
Here is what Nelson Roberts Investment Advisors has to say about Trane Technologies plc in their Investor Letter:
“Trane Technologies is a dominant player in commercial and residential heating, ventilation, and air-conditioning (HVAC) systems, as well as in transportation refrigeration. HVAC providers may see an uptick in commercial HVAC business, as having updated ventilation in buildings will be essential for employees to safely return to offices. We expect air filtration, air-quality assessment, and touchless access control solutions to become larger market opportunities due not only to COVID-19, but also the smoke from the disastrous west coast wildfires. Longer term, the shift towards sustainability and energy efficiency provide additional tailwinds for the company.”
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Last December 2020, we published an article telling that Trane Technologies plc (NYSE: TT) was in 37 hedge funds’ portfolio, almost making it to its all time high statistics of 40. Trane Technologies plc delivered a 43.91% return for the past 12 months.
As of September 2020, Nelson Roberts Investment Advisors had a 70.9K share position in TT that amounted to $8.6 million. However, our calculations showed that Trane Technologies plc (NYSE: TT) isn’t ranked among 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
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.
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Despite Joe Biden’s age, raging inflation, and his dismal 45% approval level…
I believe he will not only run again next year, but could win a 2nd Presidential term… and by a LANDSLIDE.
Along the way, I believe Biden could become one of the most powerful Presidents in history.
How is this all possible?
Well, it’s almost entirely because of a surprising July 25th “twist” that hardly anybody’s talking about right now.
In short, a powerful new economic force is quietly building behind Joe Biden… and I’m confident Biden can harness this force’s inevitable wave, carrying him to a LANDSLIDE re-election win.
The good news is, this powerful new force can help you make a lot of money even in a bear market. I believe it will make millions of Americans vastly wealthier.
The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. That means much bigger government. And it means it’s going to be harder than ever to hold onto any money you make.
Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. He launched his hedge fund in 1956 with $105,100 in seed capital. Back then they weren’t called hedge funds, they were called “partnerships”. Warren Buffett took 25% of all returns in excess of 6 percent.
For example S&P 500 Index returned 43.4% in 1958. If Warren Buffett’s hedge fund didn’t generate any outperformance (i.e. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. That would have been 9.35% in hedge fund “fees”.
Actually Warren Buffett failed to beat the S&P 500 Index in 1958, returned only 40.9% and pocketed 8.7 percentage of it as “fees”. His investors didn’t mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. That year Buffett’s hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as “fees”. S&P 500 Index lost 10.8% in 1957, so Buffett’s investors actually thrilled to beat the market by 20.1 percentage points in 1957.
Between 1957 and 1966 Warren Buffett’s hedge fund returned 23.5% annually after deducting Warren Buffett’s 5.5 percentage point annual fees. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. An investor who invested $10,000 in Warren Buffett’s hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made more than $36,000 in fees from this investor).
As you can guess, Warren Buffett’s #1 wealth building strategy is to generate high returns in the 20% to 30% range.
We see several investors trying to strike it rich in options market by risking their entire savings. You can get rich by returning 20% per year and compounding that for several years. Warren Buffett has been investing and compounding for at least 65 years.
So, how did Warren Buffett manage to generate high returns and beat the market?
In a free sample issue of our monthly newsletter we analyzed Warren Buffett’s stock picks covering the 1999-2017 period and identified the best performing stocks in Warren Buffett’s portfolio. This is basically a recipe to generate better returns than Warren Buffett is achieving himself.
You can enter your email below to get our FREE report. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. We initially share this idea in October 2018 and the stock already returned more than 150%. We still like this investment.
Free Report Reveals
Warren Buffet's Secret Recipe
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