Should You Invest in Facebook Inc. (FB)?
Distillate Capital, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. Distillate Capital’s U.S. FSV strategy outperformed the S&P 500 Index by just over 3 percentage points in the first quarter of 2021and lagged the Russell 1000 Value ETF benchmark by around 2%. Distillate Capital’s International strategy trailed its MSCI ACWI ex-US benchmark by just under 2% in the quarter following substantial outperformance in 2020 You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Distillate Capital, in its Q1 2021 investor letter, mentioned Facebook, Inc. (NASDAQ: FB), and shared their insights on the company. Facebook, Inc. is a Menlo Park, California-based social networking service company that currently has a $904.7 billion market capitalization. Since the beginning of the year, FB delivered a 16.81% return, extending its 12-month gains to 50.26%. As of May 07, 2021, the stock closed at $319.08 per share.
Here is what Distillate Capital has to say about Facebook, Inc. in its Q1 2021 investor letter:
"Facebook has come in and out of the portfolio before and did so this quarter on the back of substantial improvement in projected free cash flows such that its valuation now meets the criteria for inclusion."
Bloomua / Shutterstock.com
Our calculations show that Facebook, Inc. (NASDAQ: FB) ranks 3rd in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Facebook, Inc. was in 242 hedge fund portfolios compared to 230 funds in the third quarter. FB delivered a 19.02% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
