Insider Monkey

Tollymore Investment Partners’ Q3 2020 Investor Letter

Tue, 19 Jan 2021 07:14:25 GMT

Tollymore Investment Partners, a private investment partnership firm that invests in small quantities of publicly listed companies, published its third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 39.5% was recorded by the fund for the 1st 9 months of 2020, way above its MSCI ACWI benchmark that returned 13%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Government Demand for Utility Services, Likely for the Advantage of Alamo Group (ALG)

Tue, 19 Jan 2021 07:11:40 GMT

Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its ‘Small-Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.41% was recorded by the fund for the 3rd Quarter of 2020, below its Russell 2000 Value benchmark that returned 18.91%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Third Avenue Management in their Small-Cap Value Fund’s Q3 2020 Investor Letter said that future scenarios are likely to benefit Alamo Group Inc. (NYSE: ALG) and so they continue to have bullish projections for the company. Alamo Group Inc. is an agriculture and infrastructure equipment manufacturer company that currently has a $1.8 billion market cap. For the past 3 months, Alamo Group Inc. delivered a 28.87% return and settled at $151.50 per share at the closing of January 15th.

Here is what Third Avenue Management has to say about Alamo Group Inc. in their Investor Letter:

“Another long-time Fund holding, Alamo Group, derives a majority of its revenues from state and local governments. Even though its products cater to basic government services (street sweeping, snow removal, roadside mowing, etc.), these products need to be replaced frequently. There is a groundswell
of support to replenish state and local government coffers after surpluses were drained due to COVID-19. Alamo would be a beneficiary if and when this occurs.”

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Last December 2020, we published an article telling that Alamo Group Inc. (NYSE: ALG) was in 9 hedge funds’ portfolio. Its all time high statistics is 15. Alamo Group Inc. delivered a 9.82% return YTD.

As of September 2020, Third Avenue Management had a 46K share position in ALG that amounted to $5 million. This made Third Avenue Management as the top 2 hedge fund that holds most of ALG’s stake, just below Longview Asset Management with $147 million worth of ALG shares. However, our calculations showed that Alamo Group Inc. (NYSE: ALG) does not belong to the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.

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

Silver Ring Value Partners Q4 2020 Investor Letter

Tue, 19 Jan 2021 06:05:48 GMT

Silver Ring Value Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 26.6% for the last 12 months (net), outperforming its benchmark, the Russell 3000 Index which returned 20.9% in the same period. You should check out Silver Ring Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

Nuance Communications Inc. (NUAN) – Bull Case Theory

Tue, 19 Jan 2021 04:01:28 GMT

We came across a bull case theory on Nuance Communications Inc. (NUAN) on Valueinvestorsclub authored by rjm59. We find articles on VIC thoroughly researched by aspiring analysts, who tend to think out of the box. Click here for the full article. Here is the summary:

NUAN is an American multinational computer software technology corporation. The Massachusetts-headquartered company is the premier provider of speech recognition and artificial intelligence for the medical industry for the purpose of clinical documentation. It also uses the same technology in the complex multi-disciplined Enterprise segment for call centers and security for customer such as test and authentication.

NUAN’s recently launched flagship new product Dragon Ambient Experience (DAX) could be the game changer. It is in direct competition with the world’s two current widely used voice to text technologies for clinical documentation – Dragon Medical and M*Model. Both products are well-integrated with EHR systems, wherein doctors can dictate part of the medical note instead of typing it. Dragon Medical uses NUAN’s Clinical Documentation Improvement (CDI), which automatically detects discrepancy or lack of clarity in the medical note and prompts a clarification from the doctor, reducing potential reimbursement rejections.

The software of DAX, on the other hand, directly captures the conversation between the doctor and patient, converts the conversation into transcription, and generates the note by itself for the HER system. The process leaves the doctor to only review and make any required edition to the note.

Despite a very wide use of Dragon Medical and M*Model, physicians are experiencing thin revenues. DAX could possibly provide cost-effective and time-efficient solutions to physicians and ease the pressures in their professional life. If implemented successfully, DAX has the potential to revolutionize the process of clinical documentation for large part of the health care market. DAX presently covers 10 specialties. NUAN is targeting to expand the coverage to 30 specialties over the next couple of years.

With an intended average price tag of $10,000 per physician, company can target over 80% of the physicians in the United States. NUAN estimates subscribers could see a 10x ROI on their investment. Considering the edge NUAN enjoys in technology, untapped healthcare sector, and competitive pricing, company’s stock is looking attractively priced here.

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JPMorgan Chase 2020 Q4 Earnings

Tue, 19 Jan 2021 03:32:09 GMT

JPMorgan Chase & Co. (NYSE:JPM) is one of the oldest financial institutions in the U.S., with its history dating back over 200 years. The bank, in its present state, is the result of several mergers between different financial institutions. Currently, it is the largest American bank by market capitalization and famous for providing a range of investment banking and financial services to customers including government institutions and big corporations.

JPM stock was trading around $140 at the start of 2020. But like other financial institutions, JPMorgan shares also lost a substantial value following the Covid-19 outbreak. Its share price touched a low of around $77 in March as the pandemic severely affected the economy.

Meanwhile, interest rates and other borrowing rates remained low during the pandemic, pressurizing the operating margins of leading banks. Nevertheless, JPM stock regained most of its lost value in the subsequent months, particularly during the fourth quarter, and ended the year at $127.07.

The bank on Friday announced its financial results for the fourth quarter above expectations. It reported earnings of $12.1 billion, or $3.79 per share for the three-month period ended Dec. 31, up 42 percent from $2.57 per share in the comparable period of 2019. Revenue came in at $30.2 billion, versus $29.2 billion in the same quarter, a year earlier. Analysts on average were looking for a profit of $2.62 per share and revenue of $30.2 billion.

Speaking on the results, CEO Jamie Dimon said in a statement, “JPMorgan Chase reported strong results in the fourth quarter of 2020, concluding a challenging year where we generated record revenue, benefiting from our diversified business model and dedicated employees.”

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Despite better-than-expected results, JPM shares slipped 1.79 percent to $138.64 in the previous trading session. Overall, the stock is up about 9 percent on a year-to-date basis. JP Morgan was ranked #1 in our list of the 10 best bank stocks to buy now.

Wells Fargo (WFC) Stock Turns Red After Q4 Revenue Missed Expectations

Tue, 19 Jan 2021 03:21:43 GMT

Wells Fargo & Co. (NYSE:WFC), founded in 1852, is a leading financial services company based in San Francisco. It offers a suite of solutions and services related to banking, investment, and personal finance through its thousands of branches spread across the U.S. Wells Fargo in 2015 became the world’s biggest bank in terms of market value, though it lost that position shortly after it was found involved in opening nearly 2 million fake bank accounts. In 2018, the Federal Reserve System put the bank under an asset cap, and the move severely hurt its growth.

WFC shares were trading around $53 at the start of 2020. Its stock fell sharply in March after it announced to pay $3 billion to resolve criminal probes related to its fraudulent sales practices. In the same month, the bank’s chairwoman Betsy Duke stepped down from her position amid heightened pressure from regulators over Wells Fargo’s stumbling attempts to fix the misleading consumer practices. Duke stepped down after leading the board for more than a year.

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Wells Fargo shares traded flat for the most part of 2020, touching a low of $20.76 on October 29, a couple of weeks after reporting disappointing results for the third quarter. Overall, the stock lost about half its value during 2020.

The company was off to a decent start in 2021, with the stock trading higher for most of the days. However, Wells Fargo shares fell 7.80 percent on Friday after reporting fourth-quarter revenue below the consensus forecast. Q4 revenue came in at $17.93 billion, down 9.7 percent on a year-over-year basis, and below analysts’ average estimate of $18.12 billion.

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Nevertheless, Q4 earnings increased to $2.99 billion, or 64 cents per share, beating the consensus forecast of 59 cents per share. Meanwhile, the bank warned that asset sales and low interest rates will affect its revenue in the coming quarters. Wells Fargo ranked 24th among the 30 most popular stocks among hedge funds.

10 Best Food Stocks To Buy Now

Tue, 19 Jan 2021 03:06:08 GMT

In this article we discuss the 10 best food stocks to buy now. The food industry remains ripe for further growth amid a surging demand and changing consumer trends. You can skip our investment thesis for the food industry and click here to read 5 Best Food Stocks to Buy Now.

Food remains one of the thriving industries worldwide, given its essential business nature and a strong connection to consumers. In 2020, global food industry revenue jumped by a record 20% year over year to reach $8.2 trillion, driven by a huge demand increase amid the coronavirus outbreak. As the pandemic disrupted global food supply chains, consumers flocked to convenience stores to load up their carts, resulting in a 76% rise in convenience food sales. Food industry in the U.S. is extremely diverse, with a variety of subsectors. Moody’s said in an October 2020 report that it expects a slight decline in sales and earnings in the packaged food industry in 2021 when compared to 2020, but the industry will rebound to strong growth levels in 2022 and beyond. The firm maintained its stable outlook for the packaged foods industry, while forecasting that EBIT will continue to rise steadily over the next 18 months.

Coronavirus Altered Consumer Behavior Forever?

The coronavirus crisis was a boon for at-home food consumption as people restricted their movement and governments barred dine-out operations. According to International Food Information Council’s (IFIC) 2020 Food & Health Survey report, 60% of Americans said they started cooking at home more after the coronavirus outbreak, while 32% said they are snacking more. Overall, 27% respondents said they are thinking about food more than usual. All these trends show that the future looks bright for food stocks in the U.S. Analysts think these trends will become the new normal even after the pandemic. About 75% respondents in a survey conducted by New York-based PR and food research firm Hunter said that they have become more confident in the kitchen, while 73% said they are enjoying cooking in the kitchen.

Major food companies, including General Mills, Conagra Brands and Campbell Soup Co., are reporting huge profits and revenue growth amid the changing consumer behavior. In the fiscal fourth quarter, General Mills said its U.S. meals and baking revenue jumped 75%, while cereal sales rose 26% in the period. General Mills CEO Jeff Harmening in December 2020 said that consumer eating habits will not go back to where they were before the pandemic.

Digital Footprint of Food Companies

Food companies are also rapidly changing their strategies to adapt to the changing market. Deloitte said in its Consumer Products Industry 2021 outlook report that food companies’ hold on ecommerce channels is still thin. They will have to increase their digital investments to catch the growing market.

Fresh Food Market

Consumers are also preferring to eat healthy food and fresh items that have shorter shelf lives. Food companies will have to work on their packaging and storage capacities to capture this market. A report by LEK consulting found that 93% of consumers want to eat healthy at least some of the time, while 63% try to eat healthy most or all of the time.

It’s not just the food industry which is experiencing drastic changes. The financial markets worldwide are becoming volatile. The hedge fund industry’s reputation has been tarnished in the last decade during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 88 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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Let’s take a look at 10 best food stocks to buy now. We choose these stocks by analyzing the 13F data of top hedge funds, their financial health and growth catalysts.

10. UNILEVER N.V. Common Stock (NYSE: UL)

Unilever is a London-based multinational giant that makes various products, including food, confections, energy drinks, baby food, soft drinks, cheese, ice cream and tea. In the third quarter, Unilever posted a revenue of €12.93 billion, beating the Wall Street estimate by €240 million. In November 2020, the company announced a goal of €1 billion in annual sales from plant-based meat and dairy alternatives, within the next five to seven years.

As of the end of the third quarter, 19 hedge funds tracked by Insider Monkey held stakes in Unilever. Here is what Mott Capital said about Unilever last year:

“Unilever (UL) fell by almost 5% in the fourth quarter but managed to increase by 9.4% on the year. The company’s fourth quarter decline followed a disappointing sales outlook, noting it would be at the lower end of its prior range. The story for the company hasn’t changed much over the years, with prospects for growth coming from many emerging markets. I continue to believe this company offers a level of stability to the portfolio, and its reach into the growing middle class around the world remains very attractive over the long-term.”

9. Archer-Daniels-Midland Co (NYSE: ADM)

Archer-Daniels-Midland Company, often known as ADM, is a multinational food processing company, with about 270 plants and 420 crop procurement facilities worldwide. The company processes cereal grains and oilseeds into products used in food and beverages.

In November, Credit Suisse upgraded the stock to Neutral from Underperform with a $46 price target. The firm’s analyst Robert Moskow said that he was concerned about the company’s services and ethanol business in the summer, but the key facets of the business have since turned more positive.

Ric Dillon’s Diamond Hill Capital is one of the 26 elite hedge funds having stakes in ADM as of the end of the third quarter. Here is what he said last year about ADM:

“Agricultural commodities producer Archer-Daniels-Midland Co. outperformed after reporting solid quarterly results. The company benefited from the renewal of the biodiesel tax credit, as well as continued growth in its nutrition business. The company has heavy exposure to agriculture and basic food products and tends to perform well in times of market turbulence.”

8. Campbell Soup Company (NYSE: CPB)

Campbell Soup ranks 8th on the list of 10 best food stocks to buy now. The company is famous for its flagship canned soup products, canned meals, baked goods, beverages, and snacks. The New Jersey-based company is behind several famous brands, including Pepperidge Farm, Snyder’s of Hanover, V8, and Swanson.

In October 2020, R5 Capital upgraded Campbell Soup shares to Buy from Hold, with a price target of $59. The firm’s analyst Scott Mushkin said that Campbell’s new management has worked hard to increase efficiencies and cut costs. He also believes that the company’s acquisition of Snyder’s-Lance will create new synergies and income streams.

As of the end of the third quarter, 28 hedge funds in Insider Monkey’s database held stakes in Campbell, down from 32 funds a quarter earlier. Here is what Third Point said about CPB in its 2020 Q2 investor letter:

“One of our biggest winners in Q4 and 2019 was Campbell, which gained over 6% in Q4 and 55% overall in 2019. Our initial foray into Campbell was met with skepticism, both in terms of the difficulty in effecting change in a family-controlled board and the seeming difficulty in turning around what most thought was a moribund and declining business. We saw things differently and created an opening for an attractive settlement with the board by securing support from all proxy advisory firms and building consensus among non-family shareholders around the need for change.

The Board has been refreshed with the addition of three directors – two former packaged food CEOs and a marketing guru. The senior leadership team has been upgraded with the appointment of a new CEO and CFO. The balance sheet has been repaired with the divestiture of non-core fresh food and international snacks businesses for more than $3 billion, which reduced leverage from ~5x to 3.5x. The core business has stabilized, providing a stronger foundation on which to build. And, a compelling multi-year turnaround is now underway to return the company to sustainable sales and earnings growth.

CEO Mark Clouse, who is only one year into his tenure, has demonstrated how powerful leadership working with an engaged board can revitalize a company. During the most recent quarterly call in December, Clouse was upbeat about the potential for top line growth in 2020, which is key to the next leg of the story. Given strong 2019 performance, we took some profits and reduced our position to below 5% of the company, however we remain enthusiastic about Clouse’s leadership and Campbell’s future and are pleased to have played a role in repositioning this iconic company.”

7. Hormel Foods Corp (NYSE: HRL)

Hormell Foods started off in the meat industry selling ham, sausage, chicken, beef and lamb products, but now has presence in about 80 countries all over the world and sells famous branded-products including Applegate, Columbus Craft Meats, Dinty Moore, Jennie-O and Skippy. In the fourth quarter, the company reported a revenue of $2.42 billion, down 3.2% year over year and missing the Street’s estimate by $180 million.

Cliff Asness’ AQR Capital Management is one of the 30 hedge funds tracked by Insider Monkey having stakes in Hormel Foods as of the end of the third quarter. The fund owns 3.65 million shares of the company, worth $177.75 million.

6. Kellogg Company (NYSE: K)

Michigan-based Kellog is famous for its cereal and convenience foods. Some of the company’s known brands include Corn Flakes, Frosted Flakes, Pringles, Eggo, and Cheez-It. In October 2020, the company reported a 4.5% growth in third-quarter sales, above the Street’s estimate of 4%. The company continues to see a strong growth in Asia and Latin America. The company also increased its FY2020 revenue guidance to 6%, versus its prior outlook of 5%.

Jim Simons’ Renaissance Technologies owns 2.73 million shares of the company as of the end of the third quarter, worth $176.46 million. Overall, 35 hedge funds in Insider Monkey’s database held positions in Kellog entering the fourth quarter of 2020.

Continue reading this article by clicking 5 Best Food Stocks to Buy Now.

5 Best Food Stocks to Buy Now

Tue, 19 Jan 2021 03:04:04 GMT

In this article we discuss the 5 best food stocks to buy now. You can read our detailed analysis of the food industry, reasons to buy food stocks and much more in our article titled 10 Best Food Stocks to Buy Now.

5. Conagra Brands Inc (NYSE: CAG)

Illinois-based Conagra sells a variety of food products for both consumers and the food services industry. The company’s products include frozen dinners, hot cocoa, snacks and peanut butter.

Earlier in January, Conagra reported fiscal second-quarter results, posting an organic net sales growth of 8.1%. Adjusted gross margin in the quarter jumped by 144 bps to 29.9% versus the consensus of $29.4%. Adjusted EBITDA increased 16.7% to $712 million. The company’s CEO said that Conagra will benefit from the shifting consumer behavior that is expected to persist even after the pandemic.

As of the end of the third quarter, 35 hedge funds in Insider Monkey’s database had Conagra on their portfolios. The net worth of these positions is $77 million. Here is what we recently said about CAG:

According to Connolly, Conagra had an ‘excellent’ quarter with a 6% rise in net sales due to the increased demand from the public that is caused by the restrictions brought out by the pandemic. “We have a broad base strength and excellent fundamentals. Our consumers have discovered the massive innovation infusion we’ve launched over the past few years and they’re coming back again and again. But food stocks have not been up even when posting strong numbers. The market is clearly demonstrating a bit of a ‘wait and see’ attitude towards food stocks right now”. Sean Connolly also stated that they are not just looking at the absolute strength but also at their company’s relative strength. For him, the relative strength is a ‘critical leading indicator’ that can signal investors which company will emerge stronger.

“We’ve been transforming our portfolio for 5 years now. It has been a massive innovation overall”. He stated, the thing they’re experiencing with the pandemic is that consumers are now discovering that the frozen food they consume today is outstanding. “It’s essentially fresh food that is frozen but it’s on call and ready when they are and it’s a great value. Excellent food, excellent value and they’re buying it again and again,”.

Billionaire John Paulson’s Top 10 Stock Picks

Tue, 19 Jan 2021 01:46:13 GMT

In this article, we presented billionaire John Paulson’s top 10 stock picks. Click to skip ahead and see Billionaire John Paulson’s Top 5 Stock Picks.

The investing guru billionaire John Paulson, who converted his hedge fund into a family office in 2020, has benefited from its bullish bets on gold and healthcare stocks in 2020 after seeing lackluster returns in the past few years. The founder of New York-based hedge fund Paulson & Co is famous for making $20 billion in profits for betting against the financial collapse in 2008. Although Paulson gained roughly $5 billion in 2010 on a bet on gold, its strategy of investing billions of dollars into gold markets negatively impacted its portfolio in the last decade.

John Paulson founded Paulson & Co in 1994 and the hedge fund managed almost $36 billion of assets at its peak, but assets under management fell to $9 billion last year. The fund is currently managing almost $10 billion in assets under management and its 13F portfolio’s value stood around $3.2 billion at the end of the September quarter.

John Paulson seeks to invest for the long-term, with the average time held for the top ten stock stands around 10 quarters. The healthcare sector accounts for 44% of the overall portfolio, thanks to big stakes in Horizon Therapeutics and Bausch Health Companies. Investments in the basic material sector account for 24% of the 13F portfolio while communication services weighting stands just over 9%. Paulson & Co has also diversified its portfolio towards financial services, consumer cyclical, and real estate sectors.

John Paulson of Paulson & Co

Paulson & Co is well known for investing in merger arbitrage, event-driven, and distressed assets. Prior to Paulson & Co, the investing guru worked as a managing director in mergers and acquisitions at Bear Stearns. He received a Master of Business Administration degree from Harvard Business School in 1980.

While John Paulson’s reputation remains intact, the same can’t be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 88 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Let’s start reviewing billionaire John Paulson’s top 10 stock picks to see whether one of the most prominent hedge fund manager’s long-running investments worked in 2020.

10. DISH Network Corporation (NASDAQ: DISH)

John Paulson’s position in DISH Network Corporation (NASDAQ: DISH) underperformed in 2020 as shares of the pay-tv services provider fell close to 10% in the last twelve months. Unfortunately, DISH Network has lost almost half of its value since John Paulson’s hedge fund initiated a position during the first quarter of 2017.

The company is currently working on expanding its wireless offerings. Consequently, it acquired wireless carrier Boost Mobile in 2020 and acquired more than 9 million retail wireless subscribers. DISH seeks to innovate in the wireless market, with the strategy of building the nation’s first cloud-native, Open RAN-based 5G broadband network.

Other hand funds are also bullish on DISH Network as it was in 60 hedge funds’ portfolios at the end of the third quarter of 2020 compared to the all-time high of 58.

9. Discovery, Inc. (NASDAQ: DISCK)

Paulson’s position in Discovery, Inc. (NASDAQ: DISCK) also underperformed in the last twelve months despite a rally of 27% in the last month. The firm has initiated a position in Discovery in 2017, but shares of Discovery saw range-bound movement in the past three years.

The latest rally in Discovery share price is supported by the company’s strategy of moving into the streaming services business. Discovery launched its streaming service Discovery+ this month, with a library of more than 55K shows.

Andaz Private Investments, which posted a return of 14.6% in the first nine months of 2020, presented a bullish case for Discovery in an investor’s letter. Here’s what Andaz Private Investments stated:

“Discovery is extremely undervalued and on a c.30% free cash flow yield. The company also believes its stock is extremely undervalued and is allocating half of that free cash into share buybacks. At a recent conference, they informed the market that they have successfully and significantly increased pricing in their recent Upfront (gathering of TV networks and advertisers). This will most likely result in greater profits and cash flow over the medium term. Discovery continues to gain share in the USA and Internationally.”

8. Viatris Inc. (NASDAQ: VTRS)

Viatris Inc. (NASDAQ: VTRS), which was formed as a result of a merger between Mylan and Pfizer’s Upjohn, is the eighth largest stock holding of Paulson’s portfolio. Paulson’s hedge fund was the long-running shareholder of Mylan prior to the merger agreement.

After a strong share price rally in December, shares of Viatris plunged in 2021 due to a conservative outlook and a longer than expected delay in dividend announcement. The management expects flat revenue for 2021 and described the year as ‘trough’. The management also announced to initiate dividends during the second half of 2021. Previously, the company has announced to initiate dividends after the full quarter following the closure of the merger.

7. AngloGold Ashanti Limited (NYSE: AU)

Shares of AngloGold Ashanti Limited (NYSE: AU) also underperformed in the last twelve months despite a strong rally during the second and third quarter of 2020. The firm has initiated a position in AngloGold in 2009 and it currently accounts for 5.73% of the overall portfolio.

AngloGold Ashanti is among the biggest gold mining companies in the world and it operates 14 mines and three projects in nine countries. The gold price has been under pressure over the past few months after hitting an all-time high in July 2020. Consequently, the AngloGold share price fell almost 30% in the last six months. Despite that, the company believes they are in a position to offer hefty dividends to shareholders.

6. Takeda Pharmaceutical Company Limited (NYSE: TAK)

Shares of Takeda Pharmaceutical Company Limited (NYSE: TAK) fell 12% in the last twelve months. Paulson & Co has been holding a stake in Takeda since the first quarter of 2019. It is the sixth-largest stock holding of Paulson’s 13F portfolio, accounting for 6.28% of the portfolio.

Despite the sluggish stock performance, the company offers a dividend yield of almost 5%. In addition, it expects revenue to hit $50 billion levels in 2030, up 50% from its 2019 revenue. The company believes its Wave 1 pipeline, which includes 12 new molecules targeted for launch by FY2024, will help in generating the majority of revenues in the years ahead.

The company is currently working on an assets divestiture program to streamline its businesses according to future growth strategies. Takeda exceeded its $10 billion non-core asset divestiture target during the first half of 2020. The company plans to use proceeds for debt reduction and investments in growth opportunities.

Click to continue reading and see Billionaire John Paulson’s Top 5 Stock Picks.

Billionaire John Paulson’s Top 5 Stock Picks

Tue, 19 Jan 2021 01:43:18 GMT

Below are billionaire John Paulson’s top 5 stock picks. For a comprehensive list see Billionaire John Paulson’s Top 10 Stock Picks.

5. BrightSphere Investment Group Inc. (NYSE: BSIG)

Billionaire John Paulson’s has benefited from its stake in BrightSphere Investment Group Inc. (NYSE: BISG). This is because the share price of BrightSphere rallied almost 110% in the last twelve months. The firm has initiated a position in the asset management holding company in 2018 and it accounted for 8.04% of the overall portfolio at the end of the September quarter

“Our investment performance remains generally stable though there are meaningful headwinds impacting our value-focused strategies in the current growth focused market.” “In our Alternatives segment, the $0.7 billion of net inflows in Q3‘20 reflect modest pickup in the pace of fundraising activity though we continue to expect pandemic driven delay in the timing of fundraises.” “We believe we continue to be on track to achieve our targeted annualized cost savings of over $20 million by Q1’21 in our corporate center through the implementation of an affiliate-led distribution approach.” “On the capital management front, in the third quarter we reduced the borrowings on our corporate revolver to $80 million from $130 million at the end of Q2’20, reducing our Net Debt / Adjusted EBITDA ratio to 1.5x as of the end of the third quarter compared to 1.7x at the end of the second quarter. Additionally, we fully paid off the remaining $22 million outstanding amount on our non-recourse seed facility,” Suren Rana, BrightSphere’s President and Chief Executive Officer said.

10 Best Hydrogen Fuel Cell Stocks To Buy Now

Mon, 18 Jan 2021 20:01:00 GMT

In this article we discuss 10 best hydrogen fuel cell stocks to buy now. Clean energy stocks are gaining a lot of attention these days, but it’s extremely important to choose your stocks wisely if you want to profit from the upcoming wave of green energy worldwide. You can skip our analysis of the hydrogen fuel cell industry and click to read 5 Best Hydrogen Fuel Cell Stocks to Buy Now.

The world direly needs clean energy sources to avert climate disasters and maintain a sustainable growth of the economy. Governments worldwide are ditching non-renewable energy for clean energy sources for economic growth and environment-friendly business expansion. Hydrogen fuel cell is one of the top clean energy sources in the world. Hydrogen fuel cell uses chemical energy to generate electricity. They just need hydrogen (derived from water) for a continuous supply of electricity. This has catapulted hydrogen fuel cell stocks into the limelight. According to a report, the hydrogen fuel cells market size is expected to reach $13.7 billion by 2026, up from $2.5 billion in 2020, growing at a CAGR of 33% in the period.

The EV Market: Growth Catalyst for Hydrogen Fuel Cell Stocks

Perhaps the biggest growth catalyst for hydrogen fuel cell stocks is the electric vehicles market. A report suggests that fuel cell electric vehicle (FCEV) industry is expected to reach a market value of $15 billion by 2027, with a CAGR of 38% from 2020 through 2027. The market for hydrogen fuel cell-based cars and trucks in the U.S., Europe and Asia is extremely nascent and there is a huge space for growth. There are about 23,000 fuel cell-powered operational forklifts across the U.S, in addition to some fuel cell buses in use or planned in Ohio, Michigan, Illinois, Massachusetts and California.

Toyota is one of the largest automakers in the world focusing on the hydrogen fuel cell technology. The company is partnering with Honda to build fuel cell operations in Montreal. Toyota was one of the very few companies that started selling hydrogen fuel cell cars. Its fuel cell car Mirai is extremely famous in Japan. Some other hydrogen fuel cell cars include Hyundai’s Nexo and the fuel-cell version of the Honda Clarity.

Data Centers

Another major catalyst for hydrogen fuel cell stocks in 2021 and beyond would be the applications of fuel cells is data centers. As the world moves towards big data, companies need efficient data centers with uninterrupted supply of power to maintain their operations. Hydrogen fuel cell technology is the top choice of major technology companies for their data centers, as it ensures a steady supply of electricity in an extremely cost-effective fashion. In July 2020, Microsoft said it used hydrogen fuel cells to power data center servers over the course of 48 hours. The company plans to replace diesel engines with clean energy sources at its data centers in the near future, and intends to become carbon negative by 2030.

Like the energy industry, clouds of massive changes are also circling over the financial markets. The hedge fund industry’s reputation has been tarnished in the last decade during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 88 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Hydrogen fuel cells will see a huge demand in the future as aviation, trucking, and industrial companies weigh using environment-friendly technology to decarbonize the hard-to-abate sectors such as refining and steel production. Some technology companies are also looking into using hydrogen fuel cells in mobile devices. A few months back, it was reported that Apple was investigating use of hydrogen fuel cells in mobile devices as an alternative to conventional battery charging technology for long battery durations.

Syda Productions/Shutterstock.com

Governments worldwide have also started using hydrogen fuel cells to supply cost-effective electricity to remote areas, replacing diesel engines. Hydrogen fuel cell technology is also being used in hospitals and medical facilities where uninterrupted supply of electricity is needed.

Let’s take a look at the 10 best hydrogen fuel cell stocks to buy now. Our ranking criteria is based on the disclosed positions of famous hedge funds, fundamental financial health and growth catalysts of the top hydrogen fuel cell companies in the U.S.

10. FuelCell Energy Inc (NASDAQ: FCEL)

Connecticut-based FuelCell Energy designs and manufactures fuel cell power plants. The company’s SureSource hydrogen fuel cell power plant produces additional hydrogen beyond what is needed for power production, generating a stream of hydrogen suitable for industrial or transportation applications. The SureSource Hydrogen is also compliant with the State of California Low Carbon Fuel Standard and is considered carbon-negative by the California Air Resources Board (CARB).

In 2020, FuelCell Energy was selected by the U.S. Department of Energy for an $8 million funding award to support the design and manufacture of a SureSource electrolysis platform capable of producing of hydrogen.

A total of 17 hedge funds tracked by Insider Monkey had FuelCell Energy stock in their portfolios as of the end of the third quarter of 2020. The last time we observed an insider purchase in FCEL was in November 2018 when an insider purchased 100,000 shares at an average price of $0.75. Today, FCEL shares change hands at $15.

9. Bloom Energy Corp (NYSE: BE)

Bloom Energy ranks 9th on the list of 10 best hydrogen fuel cell stocks to buy now. The stock rallied in July 2020 after the company announced its strategy for the hydrogen fuel cell commercial market. Bloom said that it now sees hydrogen as a viable energy option as it strives to convert conventional energy plants to zero-carbon emissions plans for its clients. The company also said it will be deploying a 100% hydrogen-based system in South Korea. Its existing partnership with SK E&C has already sold 120 megawatts of fuel cells in South Korea, generating over $1 billion in revenue for the company.

A total of 17 hedge funds tracked by Insider Monkey held stakes in Bloom Energy as of the end of the third quarter. The net worth of these stakes is $176.1 million. First Eagle Investment Management briefly talked about BE in its 2020 Q1 investor letter:

“Bloom Energy and its hydrogen fuel cell peers performed very well early in 2020, as investors appeared to develop greater appreciation for the potential of fuel cell technology in an environment of falling natural gas prices. Bloom gave back all of this performance and more mid-quarter, however, as a financial restatement that delayed the release of their 2019 10K compounded the impact of the general coronavirus-related market selloff. A better-than-feared fourth quarter earnings report, which showed 50% growth in system acceptances, prompted a late-March rebound.”

8. Nikola Corporation (NASDAQ: NKLA)

NKLA ranks 8th in our list of the best hydrogen fuel cell stocks to buy now. Nikola is one of the world’s most famous electric car technology companies. The company is known for its hydrogen-powered truck, Nikola One, and several other hydrogen fuel cell projects. Earlier in January, the company Nikola secured an innovative electric rate schedule with Arizona Public Service Company for the development of hydrogen-based fueling solutions for the transportation industry.

As of the end of the September quarter, Philippe Laffont’s Coatue Management owns 3,697,467 shares of Nikola, worth $75.72 million. Overall, 17 hedge funds in our database held stakes in Nikola entering the fourth quarter. J.P. Morgan’s Paul Coster recently lowered his price target for Nikola, but said that the company can turn the corner in 2021 with the news cycle becoming “less drama-filled” and turning “generally positive.” Worm Capital isn’t as optimistic. Here is what they said in their 2020 Q3 investor letter:

I’ll give you an example of a landmine we recently avoided. Last fall, a relatively unknown company announced a major battery breakthrough that, they claimed, would compete with Tesla’s Semi all-electric truck. We began digging into the company, its founder, and the supposed technological breakthroughs. What we found was bizarre: Despite a charismatic CEO who claimed major advancements in cell chemistry that would improve vehicle range and efficiency, we couldn’t independently verify the company’s claims. Needless to say, after much digging, we passed on the investment.

That company, Nikola Motors, went public this summer. While retail and even institutional investors rushed into the stock, Wall Street analysts championed the company. It appeared, to us at least, that little diligence had been completed on this company. Cowen analyst Jeffrey Osborne, for instance, rated the company a “Buy.” His analysis? “We see Nikola as an intriguing investment opportunity,” he wrote. In a two-month period, its shares surged roughly 450%.

By September, however, the Nikola story appeared to be falling apart. Hindenburg Research, a short-seller, published a damning report, alleging fraud, titled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America.” The report claimed Nikola had inflated its technological prowess, and over the next several days, the value of the stock began to plummet. [Nikola, now being investigative by the DOJ and SEC, denied Hindenburg’s claims.]

Though we chose not to short this company—as a rule, we tend to avoid shorting momentum stocks—it’s a reminder that long-term investment requires patience, conviction—and diligence. I bring up this anecdote to remind investors that, equally important to picking winners, is avoiding the losers. In this disruption “super cycle,” I anticipate there will be many imitators riding the coattails of industry disruptors. My philosophy is to only own the companies with the absolute best value proposition winning customers on the ground-level. This process, in my opinion, provides a significant margin of safety to sidestep the landmines.”

7. Ballard Power Systems Inc (NASDAQ: BLDP)

BLDP ranks 7th in our list of the best hydrogen stocks to buy now. Ballard Power Systems makes hydrogen fuel cells for automobiles. The Canadian company also manufactures proton exchange membrane fuel cell products. On Jan. 11, Raymond James analyst Michael Glen said that Ballard Power Systems is a strong investment opportunity for 2021, as he believes this year will be a “watershed moment in the history of the hydrogen economy.” Ballard Power Systems in December 2020 received purchase orders from Van Hool for 10 fuel cell modules to power Van Hool A330 buses to be deployed in the Netherlands.

Of the 816 hedge funds tracked by Insider Monkey, 20 held stakes in Ballard Power as of the end of the third quarter, up from 16 funds a quarter earlier. Lakewood Capital doesn’t agree with these hedge funds. Here is what Bozza said in Lakewood’s 2020 Q2 investor letter:

“In recent months, fuel cell stocks have once again become one of the latest market crazes, with investors flocking to the sector despite the industry’s history of many disappointments, poor financial performance and undifferentiated technologies. The fund is short Ballard Power Systems, a consistently loss-making and cash-burning Canadian company that has recently seen its market capitalization swell to a remarkable $4.5 billion (up eight-fold from the end of 2018). We have tracked Ballard Power (and several other fuel cell stocks) for the past decade, and on five separate occasions, investors bid up the shares in a frenzy only to be left holding the bag months later when they came crashing down to earth.

Ballard Power, born in the height of the tech bubble twenty years ago, is a supplier of fuel cell “stacks,” which are layers of energy-producing units that are combined to generate power. The stacks are sold to original equipment manufacturers and systems integrators for applications such as transportation (bus, truck and rail) and material handling. A quick peek at Ballard’s financials reveals just how challenging selling fuel cell energy stacks to vehicle manufacturers can be. The company generates just over $100 million in annual revenues and has never earned more than $40 million in annual gross profit. 2019 revenues were actually 12% below what the company generated in 2017, and annual EBITDA losses and cash burn have averaged about $15 million and $25 million, respectively.

The source of recent excitement appears to center on the potential for Ballard Power to be a major supplier to the transportation industry as the demand for “green” energy sources increases. We are skeptical. We view fuel cell stacks as a low value-add product that is relatively commoditized. If the sale of these products ever became materially profitable for Ballard Power, we believe an equipment manufacturer could insource the technology relatively easily or simply switch to one of Ballard Power’s numerous competitors. With just $45 million of PP&E and an R&D budget of about $25 million, Ballard Power lacks the manufacturing infrastructure or technological expertise that would ever result in a sustainable and profitable competitive position. For example, Cummins, one of the largest global diesel and natural gas-powered engine manufacturers, acquired one of Ballard Power’s competitors in 2019 (for less than $300 million) and is already spending over $100 million in annual R&D on fuel cell, hydrogen production and hybrid power systems investments.

As the current euphoria wears off, we expect the reality of Ballard Power’s poor business prospects to once again set in as the company continues its long history of disappointing financial results. Setting a price target on a perpetually loss-making business with murky prospects like Ballard Power can be a challenge, but if its market capitalization merely settled at the level of prior peaks, the stock would be down over 80% from current levels. As one former senior industry participant told us, “I just can’t get my head around the valuation, it’s just crazy… Ballard doesn’t even have a story.”

6. Plug Power Inc (NASDAQ: PLUG)

New York-based Plug Power is one of the biggest players in the hydrogen fuel cell industry. The company makes hydrogen fuel cell systems that replace conventional batteries in cars and other devices. Plug Power shares have seen a phenomenal rally over the last 6 months, gaining a whopping 666% in value. French automaker Renault on Jan. 12 said it signed a memorandum of understanding with Plug Power to develop, build and market electric fuel cell light commercial vehicles.

D.E. Shaw’s hedge fund leads the 21 hedge funds tracked by Insider Monkey having stakes in Plug Power as of the end of the September quarter, with 18.34 million shares of the company, worth $245.98 million. Here is what Massif Capital said about PLUG in its 2020 Q2 investor letter:

“We also closed our short position in Plug Power this quarter as the market was subsumed with enthusiasm over their recent acquisitions, resulting in an almost 80% rally in the stock over ten trading days. Our decision to exit was painful at the time as we were forced to reconcile with a collective exuberance that was (and is, in our opinion) not grounded reality. In hindsight, it was the correct decision as we avoided most of its recent vertical trajectory.”

Click to continue reading and see the 5 Best Hydrogen Fuel Cell Stocks To Buy Now.

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Disclosure: No positions. 10 Best Hydrogen Stocks To Buy Now is originally published at Insider Monkey. Follow Insider Monkey on Twitter

5 Best Hydrogen Fuel Cell Stocks to Buy Now

Mon, 18 Jan 2021 19:58:56 GMT

In this article we discuss the 5 best hydrogen fuel cell stocks to buy now. You click here to read our detailed investment thesis for the hydrogen fuel cell industry and see 10 Best Hydrogen Fuel Cell Stocks to Buy Now.

5. Dow Inc (NYSE: DOW)

Chemicals giant Dow started investing in hydrogen projects way earlier than its competitors. The company reached a deal with GM in 2004 for a joint hydrogen energy project. In 2017, Praxair started a facility to recover hydrogen from Dow Chemical’s ethylene production facilities, and upgrade it into high-purity hydrogen by using a pressure swing adsorption process.

A total of 42 hedge funds tracked by Insider Monkey reported owning stakes in Dow as of the end of the third quarter. The total worth of these stakes is $512.46 million. Richard S. Pzena’s Pzena Investment Management owns 5,759,760 shares of the company, worth $270.99 million.

Here is what Evermore Global said about DOW and DD in its 2020 Q1 investor letter:

“With respect to Corteva, Dow and DuPont, COVID-19 related shutdowns that started in China painted an ominous picture for the global macro landscape, and we exited our positions in these three companies that comprised the former DowDupont (DWDP) beginning in February. Additionally, numerous channel checks we performed indicated that various supply chains were being disrupted and stressed, a poor sign for three companies that are very global in nature.

In retrospect, we remain generally happy with managements execution of many of the fundamental tenets of our original investment thesis in DWDP – the separations and spins were completed on time, the restructuring programs were well executed, and capital allocation across the three companies is much more streamlined and shareholder friendly today than in the past. Unfortunately, big picture issues that started with the U.S. – China trade war and remain today with the global collapse in macroeconomic activity has severely impacted each of the former DWDP companies. We will continue to remain close to each company and could reenter on or more of the aforementioned positions should an opportunity present itself.”

Hedge Fund and Insider Trading News: Warren Buffett, Pantera Capital, Alta Fox Capital ...

Mon, 18 Jan 2021 18:52:48 GMT

Hedge Fund Predicts $115K Bitcoin Price and the Fall of ‘Speculative’ Altcoins (Bolly Inside)
New details from Pantera Capital, an expenditure agency and hedge fund, implies that Bitcoin’s (BTC) current cost motion is intently next the stock-to-adhere to model’s trajectory and the firm’s analysts believe that BTC will arrive at $115,212 by Aug. 1. Bitcoin’s parabolic rally may have placed the selling price a little bit ahead of the model’s projection and this week’s 28% correction sent short term shivers throughout the current market but sharp corrections and short consolidation periods are attribute of bull marketplaces.

Global Hedge Funds Struggle Even in a More Open China Market (Pensions&Investments)
Global asset managers are struggling to find a foothold in China’s 3.74 trillion yuan ($578 billion) hedge fund industry, despite long-awaited policy changes designed to give foreigners more paths to invest. In November, China expanded access for more than 400 foreign institutions like UBS Group and Citigroup, allowing them to invest through private securities funds, the local version of hedge funds.

Warren Buffett’s 2020 Scorecard (Morning Star)
Billionaire investor Warren Buffett had a mixed year by his standards, with some winners such as Apple and Snowflake balanced by banks and energy. In a tough year for most investors, even Warren Buffett had a mixed year by his standards. The share price of his Berkshire Hathaway (BRBK.B) investment company inched forward by just 2.5%, lagging major US benchmarks like the S&P 500. Top holding Apple (AAPL) had a stellar year and an investment in data IPO Snowflake (SNOW) proved an immediate hit. But there were a number of misses too, with investments in US banks and financial services proving costly.

Rawpixel.com/Shutterstock.com

Video: Best Year in A Decade for Nordic HF – December Review (Hedge Nordic)
Stockholm (HedgeNordic) – Few would have predicted the Nordic Hedge Index would deliver the highest returns in a decade and end the year at an all-time-high after the first quarter of 2020! The NHX Composite rallied by 2.7% in December to close up 8.4% on the year. All sub-strategies are popping up in green: NHX-CTA advancing by 3.7%, Equities adding 4.1% and Multi-Strategy funds 2%, respectively. Nordic Fixed Income Strategies advanced by 0.5% and Fund of Funds climbed 1.6%.

Impairment Charge Sends GAM Further into the Red – But Swiss Manager Sees Investment Flows Rise in Q4 (Hedge Week)
Switzerland-headquartered global asset manager GAM, which is home to Cambridge-based quantitative hedge fund unit GAM Systematic, is set to post a CHF380 million (USD426.4 million) loss in its full-year 2020 results published next month. The loss stems mainly from a CHF377.7 million impairment charge announced in its first half results published last August, which relates to legacy goodwill resulting from the acquisition of GAM by Julius Baer in 2005 and UBS in 1999.

What ESG Transparency in Portfolio and Asset Governance Can Tell Us about ESG Commitment (Preqin)
Could a lack of ESG transparency be a sign of greenwashing, or does it point to the continued evolution of an industry still learning what ESG means and how to fully commit? As part of Preqin’s Sustainability Solutions effort to make private capital more sustainable and transparent, we have designed a model for measuring and comparing environmental, social, and governance (ESG) factors across the industry. The data provides a highly detailed and comparable breakdown of ESG profiles across LPs, GPs, and funds.

Third Avenue Management: ‘Covid Related Government Spending Will Benefit ATN International ...

Mon, 18 Jan 2021 16:57:05 GMT

Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its ‘Small-Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.41% was recorded by the fund for the 3rd Quarter of 2020, below its Russell 2000 Value benchmark that returned 18.91%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Third Avenue Management in their Small-Cap Value Fund’s Q3 2020 Investor Letter said that future scenarios are likely to benefit ATN International, Inc. (NASDAQ: ATNI) and so they continue to have bullish projections for the company. ATN International, Inc. is a telecommunications company that currently has a $747 million market cap. For the past 3 months, ATN International, Inc. delivered a -2.27% return and settled at $47.03 per share at the closing of January 15th.

Here is what Third Avenue Management has to say about ATN International, Inc. in their Investor Letter:

“Infrastructure is one of the few issues in Washington, DC that has bipartisan support. The Fund is invested in a handful of companies that could be direct beneficiaries of infrastructure spending and one is ATN International (“ATN”), an infrastructure holding company with a particular expertise in communications infrastructure for underserved markets. In recent years, ATN has been involved with multiple government initiatives including the Connect America Fund for rural broadband and the FirstNet broadband network for first responders. With a renewed focus during COVID-19 on the country’s digital divide, ATN stands to benefit further from additional government spending designed to bring broadband access to rural communities.”

EvgeniiAnd/Shutterstock.com

Last December 2020, we published an article telling that ATN International, Inc. (NASDAQ: ATNI) was in 9 hedge funds’ portfolio. Its all time high statistics is 10. ATN International, Inc. delivered a 7.26% return YTD.

As of September 2020, Third Avenue Management had a 72K share position in ATNI that amounted to $3 million. This made Third Avenue Management as the top 3 hedge fund that holds most of ATNI’s stake, just below Marshall Wace LLP with $10 million worth of ATNI shares while Renaissance Technologies tops the list with $30 million. However, our calculations showed that ATN International, Inc. (NASDAQ: ATNI) does not belong to the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.

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

If You Own RealPage (RP) Stock, Should You Sell It Now?

Mon, 18 Jan 2021 16:39:18 GMT

Argosy Investors recently released its Q4 2020 Investor Letter, a copy of which you can download here. Full-year 2020 performance was 29.8% in select accounts. The S&P 500 by comparison returned 18.4%. You should check out Argosy Investors’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, Argosy Investors’ highlighted a few stocks and RealPage Inc. (NASDAQ:RP) is one of them. RealPage Inc. (NASDAQ:RP) is a software company. In the last three months, RealPage Inc. (NASDAQ:RP) stock gained 46.2% and on January 15th it had a closing price of $87.03. Here is what Argosy Investors’ said:

“During the quarter, technology-focused private equity firm Thoma Bravo announced an acquisition of RealPage (RP), a rental property management software provider. The purchase price represents a 40% gain for us in roughly a six-month holding period, which we should be happy about, right? Again, we want to hold companies for the long-term. Rental property management software was something I felt I understood. I am familiar with the needs of the customer reasonably well given my dalliances with rental real estate. Would you rather earn a 40% gain in <1 year or 10-15% gains for the next decade? We tend to prefer the latter (and hope we will be patient enough to hold on that long). Saying goodbye to RealPage is somewhat bittersweet for us.”

Pixabay/Public Domain

Earlier this month we published an article revealing that Artisan Global Discovery Fund exited its position in RealPage Inc. (NASDAQ:RP) stock after CFO’s resignation.

In Q3 2020, the number of bullish hedge fund positions on RealPage Inc. (NASDAQ:RP) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that RealPage Inc. (NASDAQ:RP) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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:

Subscribe to Insider Monkey's Free Daily Newsletter and Join 70K+ Readers

We may use your email to send marketing emails about our services. Click here to read our privacy policy.

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

Better Days in Line for ICF International (ICFI) Says Third Avenue Management

Mon, 18 Jan 2021 16:21:52 GMT

Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its ‘Small-Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.41% was recorded by the fund for the 3rd Quarter of 2020, below its Russell 2000 Value benchmark that returned 18.91%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Third Avenue Management in their Small-Cap Value Fund’s Q3 2020 Investor Letter said that they continue to see better things ahead for ICF International, Inc. (NASDAQ: ICFI) and so they maintained their position in the company. ICF International, Inc. is a global consulting and technology services company that currently has a $1.5 billion market cap. For the past 3 months, ICF International, Inc. delivered a 17.16% return and settled at $79.73 per share at the closing of January 15th.

Here is what Third Avenue Management has to say about ICF International, Inc. in their Investor Letter:

“The Fund is invested in a handful of companies that could be direct beneficiaries of infrastructure spending and ICF International (“ICF”) is a longtime Fund holding with more than half its revenues derived from federal, state, and local governments. More than forty percent of ICF’s revenues are earned providing services to improve energy efficiency and address environmental concerns and infrastructure initiatives. A good portion of this comes directly from the Department of Health & Human Services, where ICF advises on areas such as expanding health care to underserved populations, expanding awareness to prevent the spread of disease, and improving efficiencies in the health care system. Given the events of 2020, these programs are likely candidates for funding in future government spending packages.”

Adam Gregor/Shutterstock.com

Last December 2020, we published an article telling that ICF International, Inc. (NASDAQ: ICFI) was in 12 hedge funds’ portfolio. Its all time high statistics is 17. ICF International, Inc. delivered a 7.26% return YTD.

As of September 2020, Third Avenue Management had an 83K share position in ICFI that amounted to $5 million. This made Third Avenue Management as the top 2 hedge fund that holds most of ICFI’s stake, just below Marshall Wace LLP with $5.7 million worth of ICFI shares. However, our calculations showed that ICF International, Inc. (NASDAQ: ICFI) does not belong to the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.

Subscribe to Insider Monkey's Free Daily Newsletter and Join 70K+ Readers

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

MYR Group (MYRG), Entrusted with Third Avenue Management’s Largest Stake

Mon, 18 Jan 2021 16:16:53 GMT

Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its ‘Small-Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.41% was recorded by the fund for the 3rd Quarter of 2020, below its Russell 2000 Value benchmark that returned 18.91%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Third Avenue Management in their Small-Cap Value Fund’s Q3 2020 Investor Letter said that they’ve put the biggest slice of the assets under their management in MYR Group Inc. (NASDAQ: MYRG) and so they continue to have big positive hopes for the company. MYR Group Inc. is a construction engineering company that currently has a $1 billion market cap. For the past 3 months, MYR Group Inc. delivered a huge 41.47% return and settled at $63.01 per share at the closing of January 15th.

Here is what Third Avenue Management has to say about MYR Group Inc. in their Investor Letter:

“The largest position in the Fund at quarter-end was MYR Group (“MYR”). MYR is an electrical contractor providing services to electric utilities and other corporate entities. It is a nationwide leader in transmission and distribution services and would benefit not only from long-overdue upgrades to the electrical grid infrastructure but also from the growing demand for renewable energy. Renewable energy needs to be connected to the electric grid and MYR plays a pivotal role in making it happen.”

michaeljung/Shutterstock.com

Last December 2020, we published an article telling that MYR Group Inc. (NASDAQ: MYRG) was in 10 hedge funds’ portfolio. Its all time high statistics is 17. MYR Group Inc. delivered a 97.15% return in the past 12 months.

As of September 2020, Third Avenue Management had a 303K share position in MYRG that amounted to $11 million. This made Third Avenue Management as the top hedge fund that holds most of MYRG’s stake, followed by Royce and Associates with $9 million worth of MYRG shares and AQR Capital Management with $4 million. However, our calculations showed that MYR Group Inc. (NASDAQ: MYRG) does not belong to the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.

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If You Own JD.Com (JD) Stock, Should You Sell It Now?

Mon, 18 Jan 2021 16:14:05 GMT

Argosy Investors recently released its Q4 2020 Investor Letter, a copy of which you can download here. Full-year 2020 performance was 29.8% in select accounts. The S&P 500 by comparison returned 18.4%. You should check out Argosy Investors’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, Argosy Investors’ highlighted a few stocks and JD.Com Inc (NASDAQ:JD) is one of them. JD.Com Inc (NASDAQ:JD) is an e-ommerce company. In the last three months, JD.Com Inc (NASDAQ:JD) stock gained 7.7% and on January 15th it had a closing price of $87.77. Here is what Argosy Investors’ said:

“JD.com (JD) is worth spending some time on because it is doing some very interesting things and there are some risks worth mentioning. As a refresher, JD.com is a leading Chinese eCommerce retailer that competes with Alibaba, Pinduoduo, and others. Most large tech-oriented businesses globally operate as conglomerates. Think about Google. They own YouTube, Waze, Google Cloud, and Waymo Self-Driving, just to name a few. Amazon owns its first-party retail division, its third-party marketplace, Amazon Video, Kindle, Audible, Amazon Web Services, and Alexa, to name a few. Alibaba has Taobao, TMall, Alibaba Cloud, Alipay, Ant Financial, and more.

JD.com has been making conscious decisions to break its business up into its component parts, which in our opinion helps surface the value of each business. JD’s enterprise value is about USD $120 billion today. JD spun off its JD Health business worth USD $28 billion (like Teladoc in the US), may spin off its JD Cloud business (similar to AWS in the US), has sold shares in its JD Logistics business and is shooting for a valuation of USD$40 billion in 2021 via an IPO, and JD Digits which provides supply chain and consumer loans was expected to be valued at nearly USD $30 billion before Ant Financial was prevented by the Chinese government from completing its IPO. The combined values of these business segments within JD is about $98 billion, leaving $22 billion for JD’s core retail business (and its cloud business) which is on track for over USD $100 billion in sales this year and growing over 20% per year. Assuming a 5% long-term margin for JD Retail, that segment is generating USD $5 billion of operating profit (EBIT). Given their strong market position, investors could value JD’s retail business alone at 20x EBIT, valuing JD retail at $100 billion. By comparison, Amazon was valued at over $175 billion during the year in which it earned USD $100 billion in revenue, so we continue to believe JD is being undervalued, despite a more competitive environment with Alibaba in China than Amazon faces in the US.

There is a lot to be excited about for JD. If JD.com operated in a different country, we would be unquestionably excited about JD’s prospects. However, due to being based in China, given some other anti-business moves by Chinese officials, and given retaliatory US actions in the capital markets, we have concerns about how our investment will be treated over the long term. In the most extreme scenario, which we think is very unlikely, we could lose the entire value of our investment. This concern may be what is preventing these companies from being fully valued in the US marketplace. The NYSE has given some insight into the likely path if JD.com were forced to delist from US exchanges because they have pursued a path of delisting Chinese telecom providers from US exchanges in the last few weeks. The plan involves giving investors until November to sell down their stakes in those companies. We plan to follow this developing regulator environment closely, and despite our optimism about JD, we may sell shares of JD to protect your capital from permanent loss, as remote an outcome as that may be at present.”

Pixabay/Public domain

In December 2020, we published an article revealing that JD.Com Inc (NASDAQ:JD) was one of the 10 best Chinese stocks to buy now.

In Q3 2020, the number of bullish hedge fund positions on JD.Com Inc (NASDAQ:JD) stock decreased by about 2% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in JD’s growth potential. Our calculations showed that JD.Com Inc (NASDAQ:JD) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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:

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

If You Own Pinterest (PINS) Stock, Should You Sell It Now?

Mon, 18 Jan 2021 15:54:18 GMT

Argosy Investors recently released its Q4 2020 Investor Letter, a copy of which you can download here. Full-year 2020 performance was 29.8% in select accounts. The S&P 500 by comparison returned 18.4%. You should check out Argosy Investors’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, Argosy Investors’ highlighted a few stocks and Pinterest Inc. (NYSE:PINS) is one of them. Pinterest Inc. (NYSE:PINS) is a social networking service. In the last three months, Pinterest Inc. (NYSE:PINS) stock gained 58.3% and on January 15th it had a closing price of $69.75. Here is what Argosy Investors’ said:

“With that in mind, we trimmed Pinterest (PINS) multiple times during the fourth quarter as the price increased over 200% from our initial purchase price in November 2019. This was a starter position for us at the time, and this is one of those stocks that investors kept buying because of Pinterest’s perceived benefit from stay-at-home orders. We agree that the lockdowns likely forced people globally to try things they wouldn’t have normally. As the CEO of Post Holdings (POST), Rob Vitale, said on a recent conference call about customers trying cereal while stuck at home, “that level of trial would have been extremely expensive and challenging to obtain”. Similarly, we believe people tried and liked Pinterest at a rate that would be extremely expensive for them to acquire through advertising.

Pinterest has likely pulled forward some user growth to the present and perhaps expanded their addressable market. Older generations who might never have tried various applications learned how to do Zoom calls, buy on Amazon, and discover things they love on Pinterest because they had to.

All of that is positive for Pinterest. At the same time, we believe Pinterest is and may always be a relative minnow to other social media giants like Facebook, Instagram, WeChat in China, and others. It is far more likely that they reach a level of success more similar to Twitter than Facebook. The level of engagement is simply different. Facebook measures their engagement in billions of daily active users, while Pinterest measures their engagement in hundreds of millions of monthly active users. In any event, we created a starter position because we believed Pinterest was perhaps slightly undervalued given its prospects. We believe a 200% increase in roughly 12 months overly discounts their future success and the options they have to increase conversion on their platform.”

Earlier this month, we published an article revealing that Carillon Eagle Mid Cap Growth Fund was bullish on Pinterest Inc. (NYSE:PINS) stock. The investment firm said that the company is benefiting from high engagement levels, new tools for conversion optimization, new shop-able ads, and international growth.

In Q3 2020, the number of bullish hedge fund positions on Pinterest Inc. (NYSE:PINS) stock increased by about 51% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Pinterest’s growth potential. Our calculations showed that Pinterest Inc. (NYSE:PINS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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:

Subscribe to Insider Monkey's Free Daily Newsletter and Join 70K+ Readers

We may use your email to send marketing emails about our services. Click here to read our privacy policy.

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

Third Avenue Management says Washington Trust (WASH) has Consistent Profitability & Strong ...

Mon, 18 Jan 2021 15:33:02 GMT

Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its ‘Small-Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.41% was recorded by the fund for the 3rd Quarter of 2020, below its Russell 2000 Value benchmark that returned 18.91%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Third Avenue Management in their Small-Cap Value Fund’s Q3 2020 Investor Letter said that they’ve reached their buy signal in Washington Trust Bancorp, Inc. (NASDAQ: WASH) and so they initiated a position in the company. Washington Trust Bancorp, Inc. is a bank holding company that currently has an $814 million market cap. For the past 3 months, Washington Trust Bancorp, Inc. delivered a 41.88% return and settled at $47.16 per share at the closing of January 15th.

Here is what Third Avenue Management has to say about Washington Trust Bancorp, Inc. in their Investor Letter:

“After multiple years of patiently monitoring another bank, Washington Trust Bancorp (“Washington Trust”), its shares finally reached our buy price.

Washington Trust is a high-quality commercial and retail bank that we’ve followed for years. The bank operates in the Northeast with a footprint spread across Rhode Island, Connecticut, and Massachusetts. Washington Trust boasts a rich history—it was founded in 1800 and holds the impressive distinction of being the nation’s oldest community bank. The bank has not only demonstrated an aptitude for navigating countless economic cycles but has also flourished and compounded shareholder value along the way. We believe the bank is well-positioned to continue doing so over the long term as well and is a great addition to the Fund’s compounder bucket. Although Washington Trust enjoys one of the top market shares in its core state of Rhode Island, its share of the market is still in the single digits, leaving
significant opportunities for continued gains. Moreover, the bank’s expansion within Connecticut and Massachusetts is still relatively nascent, representing even larger growth opportunities. Additionally, Washington Trust operates a valuable wealth management business, unusually large for a bank of its size, helping it generate an outsized portion of its profits from fee income.

Beyond Washington Trust’s outlook for growth, we would highlight the bank’s extraordinary track record and high quality management team, whom we first met two years ago. Over the years, Washington Trust has proven itself to be a conservative institution, always maintaining a strong balance sheet and best-in-class financial metrics, including consistent profitability, strong returns, and pristine asset quality. This has resulted in the company compounding value at exceptional rates over the long term—at mid-teen percentages on an annualized basis. Given all this, the chance to purchase the bank at a significant discount to our estimate of intrinsic value was quite compelling. To put the valuation opportunity in perspective, we were able to initiate the investment in this quality franchise at a dividend yield of seven percent despite a payout ratio only around fifty percent.”

TaLaNoVa/Shutterstock.com

Last December 2020, we published an article telling that Washington Trust Bancorp, Inc. (NASDAQ: WASH) was in 11 hedge funds’ portfolio, almost making to its all time high statistics of 12. WASH delivered a 5.27% return YTD.

As of September 2020, Third Avenue Management had a 167K share position in WASH that amounted to $5 million. This made Third Avenue Management as the top 2 hedge fund that holds most of WASH’s stake, just behind Renaissance Technologies with $8 million worth of WASH shares. However, our calculations showed that Washington Trust Bancorp, Inc. (NASDAQ: WASH) does not belong to the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.

Subscribe to Insider Monkey's Free Daily Newsletter and Join 70K+ Readers

We may use your email to send marketing emails about our services. Click here to read our privacy policy.

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