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Alta Fox Capital recently released its Q1 2020 Investor Letter, a copy of which you can download here. The Alta Fox Opportunities Fund posted a return of -26.98% for the quarter (net), underperforming its benchmark, the S&P which returned -19.6% in the same quarter. You should check out Alta Fox Capital'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, Alta Fox Capital highlighted a few stocks and Full House Resorts Inc (NASDAQ:FLL) is one of them. Full House Resorts is a casino developer and operator based in Nevada. Year-to-date, Full House Resorts Inc (NASDAQ:FLL) stock lost 50.2% and on June 22nd it had a closing price of $1.64. Here is what Alta Fox Capital said:
"We also realized losses on Full House Resorts (FLL), a small regional casino special situation. We originally invested on the premise that FLL was an inexpensive, underfollowed opportunity to capitalize on online sports betting growth given license arrangements they made with other operators. However, COVID-19 invalidated this thesis by not only causing FLL to close all of their casinos, but also temporarily shutting down all live sports. While this was a scenario we never contemplated when we underwrote the thesis, the reality of the situation required us to take the loss and reallocate to more attractive opportunities."
In Q1 2020, the number of bullish hedge fund positions on Full House Resorts Inc (NASDAQ:FLL) stock decreased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Full House Resorts downside potential. Our calculations showed that Full House Resorts Inc (NASDAQ:FLL) 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.