Palm Valley Capital recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 0.89% for the quarter, underperforming its benchmark, the S&P Small Cap 600 Index which returned 3.17% in the same quarter. You should check out Palm Valley Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the said letter, Palm Valley Capital highlighted a few stocks and Kelly Services Inc (NASDAQ:KELYA) is one of them. Kelly Services Inc (NASDAQ:KELYA) is an office staffing company that operates globally. Year-to-date, Kelly Services Inc (NASDAQ:KELYA) stock lost 18.9% and on October 7th it had a closing price of $18.32. Here is what Palm Valley Capital said:
“Kelly Services (ticker: KELYA) is a profitable, mediocre staffing company that’s upgrading its mix into higher margin areas. More importantly, the stock trades for over a 40% discount to tangible book, which is mainly supported by low-risk receivables.”
In Q1 2020, the number of bullish hedge fund positions on Kelly Services Inc (NASDAQ:KELYA) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Kelly Services’ growth potential. Our calculations showed that Kelly Services Inc (NASDAQ:KELYA) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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
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Disclosure: None. This article is originally published at Insider Monkey.