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Here’s Why Nelson Capital Sold AT and T Inc. (T)

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Nelson Capital Management, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund discussed their interpretation of the economy's reopening drives, their asset transactions, tax updates, featured equity, and a special topic about the life after the pandemic. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Nelson Capital Management, in its Q1 2021 investor letter, mentioned AT&T Inc. (NYSE: T), and shared their insights on the company. AT&T Inc. is a Dallas, Texas-based telecommunications company that currently has a $229.6 billion market capitalization. Since the beginning of the year, T delivered an 11.82% return, while its 12-month gains are up by 7.96%. As of May 07, 2021, the stock closed at $32.16 per share.

Here is what Nelson Capital Management has to say about AT&T Inc. in its Q1 2021 investor letter:

"Nelson Capital stayed busy i n t he first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions."

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Our calculations show that AT&T Inc. (NYSE: T) 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, AT&T Inc. was in 58 hedge fund portfolios compared to 51 funds in the third quarter. T delivered an 11.16% 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.

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.