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Vltava Fund Took Profits in Union Pacific (UNP) and Invested it in more Attractive Companies

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Jose Karlo Mari Tottoc
·3 min read
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Vltava Fund, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. Vltava Fund’s NAV jumped over the next 365 days (23 March 2020 – 23 March 2021) almost by 90%. The Vltava Fund portfolio as a whole had a P/E of 12.7 at the end of March, ROE (return on equity) of 20%, and dividend yield adjusted for share buybacks of 3.7%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Vltava Fund, in their Q1 2021 investor letter, mentioned Union Pacific Corporation (NYSE: UNP) and shared their insights on the company. Union Pacific Corporation is an Omaha, Nebraska-based transport company that currently has a $148.8 billion market capitalization. Since the beginning of the year, UNP delivered a 7.21% return, impressively extending its 12-month gains to 50.10%. As of April 09, 2021, the stock closed at $223.24 per share.

Here is what Vltava Fund has to say about Union Pacific Corporation in their Q4 2020 investor letter:

"There was a slight change in Vltava Fund’s portfolio in the first quarter. We sold shares of Union Pacific. It was one of three stocks we bought a year ago at the market bottom. Although from a P/E viewpoint this was one of our most expensive purchases ever, the shares worked out quite well, and, when they were more than 90% higher at the beginning of this year, we decided to take profit and put the money into stocks with more attractive valuations."

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Our calculations show that Union Pacific Corporation (NYSE: UNP) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Union Pacific Corporation was in 68 hedge fund portfolios, compared to 74 funds in the third quarter. UNP delivered a 2.02% return in the past 3 months.

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.