Davis Funds, an investment management firm, published its “Davis Global Fund” fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 23.06% was recorded by the fund for the Q4 of 2020, outperforming its MSCI ACWI benchmark that delivered a 16.25% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Davis Global Fund, in their Q4 2020 investor letter, mentioned Wells Fargo & Company (NYSE: WFC) and shared their insights on the company. Wells Fargo & Company is a San Francisco, California-based financial services company that currently has a $164.7 billion market capitalization. Since the beginning of the year, WFC delivered a 32.04% return, impressively extending its 12-month gains to 38.51%. As of April 06, 2021, the stock closed at $39.85 per share.
Here is what Davis Global Fund has to say about Wells Fargo & Company in their Q4 2020 investor letter:
"Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses."
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Our calculations show that Wells Fargo & Company (NYSE: WFC) ranks 23rd in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Wells Fargo & Company was in 99 hedge fund portfolios, compared to 90 funds in the third quarter. WFC delivered a 30.53% 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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