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Third Avenue Management: ‘Genpact (G) is No Longer a Small-Cap’

·3 min read

Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its ‘Small-Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.41% was recorded by the fund for the 3rd Quarter of 2020, below its Russell 2000 Value benchmark that returned 18.91%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Third Avenue Management in their Small-Cap Value Fund's Q3 2020 Investor Letter said that they eliminated their positions in Genpact Limited (NYSE: G) because it is no longer a small-cap company due to its outstanding performance. Genpact Limited is a professional services firm that currently has a $7.7 billion market cap. For the past 3 months, Genpact Limited delivered a 6.69% return and settled at $40.98 per share at the closing of January 15th.

Here is what Third Avenue Management has to say about Genpact Limited in their Investor Letter:

"Long-time holding Genpact was sold after the NAV discount narrowed, and due to strong performance, it was no longer a small-cap company. The investment provided handsome returns to Fund shareholders over the years, but given its market cap, valuation, and other opportunities available, selling the position and recycling the capital seemed prudent."

Pixabay/Public Domain

Last September 2020, we published an article telling that Genpact Limited (NYSE: G) was in 29 hedge funds’ portfolio. Its all time high statistics is 38. Genpact Limited delivered a -0.92% return YTD.

Our calculations showed that Genpact Limited (NYSE: G) isn’t ranked among the 30 most popular stocks among hedge funds.

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. 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. 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 10 most profitable companies in the world 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. You can subscribe to our free daily newsletter on our website.

Disclosure: None. This article is originally published at Insider Monkey.