GoodHaven Capital Management, a concentrated portfolio investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 7.93% was recorded by the fund at year end of 2020, below its S&P 500 benchmark that delivered a 17.46% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned Bank of America Corporation (NYSE: BAC) and emphasized their views on the company. Bank of America Corporation is a Charlotte, North Carolina-based financial services company that currently has a $329.9 billion market capitalization. Since the beginning of the year, BAC delivered a 26.58% return, extending its 12-month gains to 77.62%. As of March 25, 2021, the stock closed at $37.66 per share.
Here is what GoodHaven Capital Management has to say about Bank of America Corporation in their Q4 2020 investor letter:
“Finally, the Federal Reserve has just relaxed share buyback restrictions for Bank of America (and some of their brethren) – a positive development. We added to Bank of America during the last six months. We continue to find plenty of potential new investments to consider, even after the market’s recent material rebound.”
Our calculations show that Bank of America Corporation (NYSE: BAC) 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, Bank of America Corporation was in 99 hedge fund portfolios, compared to 88 funds in the third quarter. BAC delivered a 28.05% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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