Third Avenue Management recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Third Avenue Value Fund posted a return of -42.08% for the quarter, underperforming its benchmark, the MSCI World Index which returned -20.95% in the same quarter. You should check out Third Avenue Management’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, Third Avenue Management highlighted a few stocks and Vornado Realty Trust (NYSE:VNO) is one of them. Vornado Realty Trust is a real estate investment trust company. Year-to-date, Vornado Realty Trust (NYSE:VNO) stock lost 39.7% and on June 12th it had a closing price of $40.17. Here is what Third Avenue Management said:
“Vornado is a commercial real estate investment trust (“REIT”) which owns and operates a portfolio of premier office properties, primarily located in midtown Manhattan and, to a lesser extent, San Francisco and Chicago. The company has historically been extremely wellmanaged and well-financed, which remains the case today. We view the company’s balance sheet as sufficient to navigate the challenges associated with COVID-19, which will undoubtedly impact the street-level retail, and potentially office vacancy levels, within Vornado’s landmark office properties. Given the quality of Vornado’s office properties, the strength of its Manhattan platform, including as owner of Amazon’s inaugural New York City headquarters, the strength of its balance sheet, and the experience of its management team, we have been very surprised by the magnitude of its share price decline during recent market turmoil. Admittedly, the commercial mortgage-backed security market is in disarray at the moment and REITs in general have been sold en masse, but we believe that companies with modest leverage, a lack of large near-term maturities, access to liquidity, and highly desirable properties will be able to see their way through this period and potentially use it as an opportunity to create value through asset acquisitions or share repurchases. Vornado is yet one more company whose valuation currently rivals its valuation during the Global Financial Crisis.”
In Q1 2020, the number of bullish hedge fund positions on Vornado Realty Trust (NYSE:VNO) stock decreased by about 19% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Vornado’s growth potential. Our calculations showed that Vornado Realty Trust (NYSE:VNO) 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.