Choice Equities Capital Management, a boutique investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 23.1% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.2% return, but below the 31.4% return of its Russel 2000 index. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Choice Equities Capital Management, in their Q4 2020 Investor Letter, said that At Home Group Inc. (NYSE: HOME) should benefit from the re-suburbanization trend that is currently developing in the United States. At Home Group Inc. is a home decor company that currently has a $1.7 billion market cap. For the past 3 months, HOME delivered a decent 61.83% return and settled at $24.17 per share at the closing of February 18th.
Here is what Choice Equities Capital Management has to say about At Home Group Inc. in their Q4 2020 investor letter:
"Shares of At Home have also enjoyed a strong start to the year. There is some short interest in the stock, though levels have not changed much over the years. The company preannounced strong results for the holiday season early this January. So, the move higher might just be price appreciation that moves shares closer to our estimates of the company’s intrinsic value. Though it may feel like ancient history, it was not that long ago in pre-pandemic times we expressed a view that we could envision intrinsic value approaching $40 per share in an upside case. But after events of the past year, it would seem the case for that view has only been bolstered. Consider that while a number of the company’s competitors have exited the landscape (like Pier One or JC Penney), end market demand has only grown stronger. With growing customer counts and better real estate opportunities becoming available, the company should benefit from the re-suburbanization trend that is unfolding across all of the United States. Accordingly, we have not done much here other than monitor the investment."
Copyright: archidea / 123RF Stock Photo
Last December, we published an article telling that At Home Group Inc. (NYSE: HOME) was in 34 hedge fund portfolios. Its all time high statistics. MGNI delivered a massive 278.88% return in the past 12 months.
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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.