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Tuesday Morning Corp. (TUEM) “Worked Out Wonderfully” for Merion Road Capital

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Jose Karlo Mari Tottoc
·3 min read
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Merion Road Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.5% was reported by the fund’s Long Only Large Cap Fund, while its Long Short Small Cap Fund delivered a 23.8% in the first quarter of 2021, outperforming its Russell 2000 and Barclay Hedge Fund benchmarks that had a 12.9% and 4.9% gains respectively in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Merion Road Capital Management, in their Q1 2021 investor letter, mentioned Tuesday Morning Corporation (NYSE: TUEM) and shared their insights on the company. Tuesday Morning Corporation is a Dallas, Texas-based retail company that currently has a $141.1 million market capitalization. In the past 5 days, TUEM delivered a 0.33% return, while its 1-month gains are up by 2.03%. As of April 09, 2021, the stock closed at $3.0100 per share.

Here is what Merion Road Capital Management has to say about Tuesday Morning Corporation in their Q4 2020 investor letter:

"It is also worth revisiting Tuesday Morning (“TUEM”), which I discussed in my Q3 2020 letter. In January the company reemerged from bankruptcy. As part of the plan, they raised equity and offered existing shareholders the right to purchase shares at $1.10. With the stock trading well north of that figure, I exercised our rights while tactically selling shares to maintain our target exposure, thus capturing the spread. From day one I purposely kept TUEM a small position given its risk profile, but it has worked out wonderfully as we made multiples of our investment."

Our calculations show that Tuesday Morning Corporation (NYSE: TUEM) does not belong in our list of 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.

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