RiverPark Advisors, LLC recently published its Q3 2020 RiverPark Large Growth Fund commentary – a copy of which can be downloaded here. During the third quarter of 2020, the RiverPark Large Growth Fund returned 10.84% (institutional shares), compared to the total return of 8.93% by the S&P 500 Index. You should check out RiverPark’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, RiverPark highlighted a few stocks and American Tower Corp (NYSE:AMT) is one of them. American Tower Corp (NYSE:AMT) is a real estate investment trust company. Year-to-date, American Tower Corp (NYSE:AMT) stock lost 4.5% and on December 9th it had a closing price of $219.44. Here is what RiverPark said:
“American Tower: AMT shares were a top detractor on mixed second quarter results and management’s lowered full year revenue and EBITDA guidance (the company did, however, increase its AFFO/share guidance). The company guided to slower-than-expected U.S. property revenue growth due to a push-out of T-Mobile/Sprint capital spending. We believe U.S. activity should reaccelerate in the second half of this year, driven by T-Mobile/Sprint restarting capital spending, and into 2021, with Dish starting to ramp.
Although individual quarterly activity may remain lumpy, rapidly rising global mobile data usage in the range of 30%-40% per year continues to drive robust capital investment within the wireless industry. 5G deployment and major carriers’ needs for high-quality networks are likely to drive double-digit capital spending growth in 2021 (and similar amounts for the foreseeable future), irrespective of carrier consolidation. One key forecast is that by 2023, the average U.S. consumer mobile device is expected to consume nearly 50 gigabytes of data per month, nearly four times current levels. This tailwind, combined with world class execution, should drive consistent long-term revenue, cash flow and dividend per share growth at AMT for the foreseeable future. AMT’s tower portfolio continues to grow and its capital intensity continues to decline (the company has reduced the ratio of its capital expenditures to revenue by 1/3 over the past 10 years), leading to a significant increase in free cash flow (trailing-twelve-months free cash flow was $7.5 billion, compared with 2009’s $800 million).”
Last week, we published an article revealing that Qualivian Investment Partners is bullish on American Tower Corp (NYSE:AMT) stock. The investment firm expects the company to benefit from the rising wireless data growth.
In Q3 2020, the number of bullish hedge fund positions on American Tower Corp (NYSE:AMT) stock increased by about 2% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in American Tower’s growth potential. Our calculations showed that American Tower Corp (NYSE:AMT) 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
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Disclosure: None. This article is originally published at Insider Monkey.