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 Mattel Inc (NASDAQ:MAT) is one of them. Mattel Inc (NASDAQ:MAT) is a toy company. Year-to-date, Mattel Inc (NASDAQ:MAT) stock gained 31.7% and on December 16th it had a closing price of $17.84. Here is what Longleaf Partners’ said:
“Mattel (21%, 1.25%), the classic toy company, was another strong contributor in the quarter. Although this year’s revenues will be down due to global lockdowns shutting stores, the company is on track to increase its annual earnings before interest, taxes, depreciation and amortization (EBITDA) with higher gross margins and the successful execution of its outsourced manufacturing strategy. Barbie delivered another excellent performance, gaining seven points of U.S. doll market share in the second quarter, while growing its revenues as competitors shrunk. Mattel also released a new Barbie special on Netflix in September, part of a promising long-term push into intellectual property licensing. American Girl, a brand that has struggled for years, doubled its digital sales during the quarter as well. With higher profitability, shoppers returning to stores and a strong new digital media presence behind its biggest brands, CEO Ynon Kreiz’s strategy is beginning to pay off.”
In September, we published an article revealing Longleaf Partners bullish investment thesis on Mattel Inc (NASDAQ:MAT) stock in its Q2 2019 investor letter. This suggests that the investment firm has been bullish for a long time on Mattel Inc (NASDAQ:MAT).
In Q2 2020, the number of bullish hedge fund positions on Mattel Inc (NASDAQ:MAT) stock increased by about 47% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Mattel’s growth potential. Our calculations showed that Mattel Inc (NASDAQ:MAT) 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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