Why Vornado Realty Trust (VNO) Stock is a Compelling Investment Case

Third Avenue Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Third Avenue Real Estate Value Fund posted a return of 10.94% for the quarter as compared to its benchmark, the FTSE EPRA NAREIT Developed Index which returned 10.32% (before fees) 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 highlighted a few stocks and Vornado Realty Trust (NYSE:VNO) is one of them. Vornado Realty Trust (NYSE:VNO) is a real estate investment trust company. Year-to-date, Vornado Realty Trust (NYSE:VNO) stock lost 44.3% and on August 11th it had a closing price of $37.06. Here is what Third Avenue said:

“Vornado Realty Trust (a New York City-centric owner of office properties) that has more than 26 million square feet of LEED-certified properties (Leadership in Energy and Environmental Design) and is a 10-time recipient of NAREIT’s Leader in the Light Award.”

Office REIT Stocks SLG NSAM building business new york dawn vivid

Stuart Monk / shutterstock.com

This isn’t the first time Third Avenue talked about Vornado Realty Trust (NYSE:VNO) favorably either. The investment firm has been a long time Vornado Realty Trust (NYSE:VNO) bull. In June, we shared Third Avenue’s bullish Vornado Realty Trust (NYSE:VNO) thesis in this article.

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 scour multiple sources to uncover the next great investment idea. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. 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.