Saturna Capital Corporation is the investment management company of Sextant Mutual Funds. Sextant Mutual Funds recently released Q1 2020 Investor Letter, a copy of which you can download here. The Sextant Growth Fund posted a return of -15.13% for the quarter, outperforming its benchmark, the S&P 500 Index which returned -19.60% in the same quarter. You should check out Sextant Mutual Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Sextant spoke about Bristol-Myers Squibb Co (NYSE:BMY) and Merck & Co. Inc. (NYSE:MRK) stocks. Bristol-Myers and Merck are healthcare companies. Year-to-date, Bristol-Myers Squibb Co (NYSE:BMY) stock lost 13.8% and on June 18th it had a closing price of $55.97. Year-to-date, Merck & Co. Inc. (NYSE:MRK) stock lost 15.9% and on June 18th it had a closing price of $76.22. Here is what Sextant said:
“Bristol-Myers and Merck benefited from low valuations, strong balance sheets, and attractive dividends going into the crisis, minimizing the negative fallout.”
In Q1 2020, the number of bullish hedge fund positions on Bristol-Myers Squibb Co (NYSE:BMY) stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with BMY’s upside potential.
In Q1 2020, the number of bullish hedge fund positions on Merck & Co. Inc. (NYSE:MRK) stock increased by about 1% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with MRK’s upside potential.
Our calculations showed that Bristol-Myers Squibb Co (NYSE:BMY) is ranked #9 among the 30 most popular stocks among hedge funds. However, Merck & Co. Inc. (NYSE:MRK) 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
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.