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Time to Take Profits in Booking Holdings (BKNG)?

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Jose Karlo Mari Tottoc
·3 min read
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Distillate Capital, an employee-owned investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 19.22% was recorded by the fund for the Q4 of 2020, above both its S&P 500 benchmark that returned 18.4% and the Russell 1000 Value ETF that delivered a 2.67% return. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Distillate Capital, in their Q4 2020 Investor Letter said that they took profits and sold their position in Booking Holdings Inc. (NASDAQ: BKNG), because the company's valuation already turned less attractive. Booking Holdings Inc. is a company in the online travel and related solutions provision that currently has an $81.2 billion market cap. For the past 3 months, BKNG delivered a decent 16.81% return and settled at $1,983.16 per share at the closing of January 26th.

Here is what Distillate Capital has to say about Booking Holdings Inc. in their Investor Letter:

"After outperforming the market by around 15% last quarter, Booking Holding was sold as its normalized free cash ϲow valuation became relatively less appealing. Lockheed Martin was exited as its cash ϲow stability dropped below the threshold for inclusion. These were the two largest sold positions."

Pixabay/Public Domain

Last November 2020, we published an article telling that Booking Holdings Inc. (NASDAQ: BKNG) was in 113 hedge fund portfolios, its all time high statistics. BKNG delivered a 3.43% return in the past 12 months.

Our calculations shows that Booking Holdings Inc. (NASDAQ: BKNG) is ranked 13th in our list of 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.