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Richie Capital: “We Expect SolarEdge (SEDG) to Be a Net Winner From Biden’s Infrastructure Plan”

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Richie Capital Group, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of -12.3% was reported by the fund’s RCG Long Short Fund, -2.5% return by the fund’s RCG Long Only Fund, while its RCG Top 10 delivered a 0.59% gain for the Q1 of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Richie Capital Group, in their Q1 2021 investor letter, mentioned SolarEdge Technologies, Inc. (NASDAQ: SEDG) and shared their insights on the company. SolarEdge Technologies, Inc. is an California-based photovoltaics company that currently has a $13.8 billion market capitalization. Since the beginning of the year, SEDG delivered a -15.57% return, while its 12-month are impressively up by 173.04%. As of April 13, 2021, the stock closed at $269.44 per share.

Here is what Richie Capital Group has to say about SolarEdge Technologies, Inc. in their Q1 2021 investor letter:

"Our biggest detractors for the quarter included SolarEdge Technologies (SEDG – down 11.2%) – The Smart Energy solar company declined during the quarter along with most other solar energy stocks due to concerns over higher interest rates. Higher interest rates will make it more expensive for businesses and consumers to borrow money for residential and commercial solar projects. We expect interest rates to be somewhat of a headwind for years to come. However, the stronger underlying trends are in their favor. We expect SEDG to be a net winner from the Biden Administration’s infrastructure plan which focuses on Clean Energy."

Our calculations show that SolarEdge Technologies, Inc. (NASDAQ: SEDG) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, SolarEdge Technologies, Inc. was in 28 hedge fund portfolios, compared to 31 funds in the third quarter. SEDG delivered a -22.19% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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.