Why Cedar Creek Partners is Betting on Charles Schwab (SCHW) Stock

Cedar Creek Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 5.4% in the third quarter of 2020, underperforming its benchmark, the S&P 500 which returned 9.0% in the same period. You should check out Cedar Creek Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Cedar Creek Partners highlighted a few stocks and Charles Schwab Corp (NYSE:SCHW) is one of them. Charles Schwab Corp (NYSE:SCHW) is a financial services company. Year-to-date, Charles Schwab Corp (NYSE:SCHW) stock lost 17.7% and on October 20th it had a closing price of $39.13. Here is what Cedar Creek Partners said:

“We added three new positions – Charles Schwab (SCHW) and two smaller positions we are not revealing as we are still looking to buy more. The Schwab thesis is rather simple. They are a first-class company that is always innovating and we believe they should be able to gain significant synergies with the TD Ameritrade acquisition over the coming years.”

In Q2 2020, the number of bullish hedge fund positions on Charles Schwab Corp (NYSE:SCHW) stock increased by about 15% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Charles Schwab’s growth potential. Our calculations showed that Charles Schwab Corp (NYSE:SCHW) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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.