Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 7.21% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 8.93% in the same quarter. You should check out Longleaf Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Longleaf Partners’ highlighted a few stocks and Carrier Global Corp (NYSE:CARR) is one of them. Carrier Global Corp (NYSE:CARR) is a heating, ventilation, and air conditioning company. In the last three months, Carrier Global Corp (NYSE:CARR) stock gained 25.6% and on December 16th it had a closing price of $38. Here is what Longleaf Partners’ said:
“Carrier (23%, 0.83%), the heating, ventilation and air conditioning (HVAC) and security company, was also a top performer. We added to our position in Carrier when it spun out of United Technologies early last quarter, as it traded at less than half of our appraisal and a 7x trailing P/E against similar competitors that were trading at 13-17x. Carrier CEO David Gitlin and the rest of the management team have done great work in a very difficult situation to preserve cash, deleverage and position the business for a strong rebound as lockdowns eased. Carrier’s share price almost doubled over a period of months, and we exited the position in the quarter as it traded through our appraisal.”
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In Q3 2020, the number of bullish hedge fund positions on Carrier Global Corp (NYSE:CARR) stock increased by about 11% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Carrier’s growth potential. Our calculations showed that Carrier Global Corp (NYSE:CARR) 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.
