Miller Value Partners recently released its Q1 2021 Investor Letter, a copy of which you can download here. The Miller Opportunity Trust posted solid gains, with Class I up 16.67%, outperforming its benchmark, the S&P 500 Index which returned 6.17% in the same quarter. You should check out Miller Value Partners' top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Farfetch Ltd (NYSE:FTCH) is one of them. Farfetch Ltd (NYSE:FTCH) is a online luxury fashion retail platform that sells products from over 700 boutiques and brands from around the world. In the last three months, Farfetch Ltd (NYSE:FTCH) stock lost 39%. Here is what the fund said:
"Farfetch Ltd. (FTCH) declined 15% during the period following a strong performance in 4Q20. The company reported 4Q results that showed strong platform gross market value (GMV) growth of 49% Year-over-Year (YoY) while also hitting EBITDA profitability for the first time. Management guided for 1Q21 GMV growth of 50-55% versus 49% expected with adjusted EBITDA of -$20M at the midpoint versus consensus of -$5M. For the full year, the company expects GMV growth of 30-35% slightly below consensus of 38% with EBITDA margin coming in at 1-2%. The company does not expect any meaningful contribution from their Tmall launch in 2021 and announced plans to launch beauty in Fiscal Year 2022 (FY22). The big announcement was the official launch of E-concessions as a Service, which has been a long-term goal of the company. While the stock saw some declines earlier in the quarter, it was further pressured by block trades that were associated with the liquidation of Archegos Capital Management."
In Q4 2020, the number of bullish hedge fund positions on Farfetch Ltd (NYSE:FTCH) stock increased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in FTCH's growth potential. Our calculations showed that Farfetch Ltd (NYSE:FTCH) isn't ranked among the 30 most popular stocks among hedge funds.
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.