In this article, we discussed earlier SAC Capital Portfolio manager Tor Minesuk’s top 10 stock choices for 2021. You can skip our discussion of Tor Minesu’s investment philosophy and his hedge fund’s performance and go straight to Former SAC Capital PM Tor Minesuk’s Top 5 Stock Choice for 2021.
Tor Minesuk’s Mondrian Capital Management was founded in 2017 and experienced huge gains in 2020 thanks to major investments in fastest growing companies in the information technology, consumer discretion and communications sectors. All of its top ten positions surpassed the broader market return in 2020. Despite this, the hedge fund has made several changes to its 13F portfolio in the fourth quarter to adjust its stock positions according to changing market trends.
The New York-based hedge fund started positions in 17 stocks in Q4 including the largest positions in ServiceNow (NASDAQ: NU) and Qorvo Inc (NASDAQ: QRVO) and Adobe Inc (ADBE). In addition, Tor Minesuk has also added to its 10 existing positions.
The hedge fund likes to take advantage of short-term price movements instead of having long-term positions. The company sold its 20 share positions in Q4 and reduced its stake to 9 shares.
Tor Minesuk, who also worked for Ken GriffinCitadel has been selling its entire stake in Microsoft Corporation (NASDAQ for more than 2 years: MSFT) in the fourth quarter after starting the position in the second quarter of 2019. The company has benefited from its MSFT share because the shares of the technology giant rose sharply in the last few quarters.
Similarly, the firm also leveraged MongoDB, Inc (NASDAQ: MDB) share price gains by selling its entire stake in the fourth quarter. MDB accounted for 4.27% of the total portfolio at the end of the third quarter. The New York-based hedge fund had created a position in MongoDB in the fourth quarter of 2018 when it traded below $ 100. MDB shares are currently trading around the $ 420 level.
In addition to past achievements, Tor Minesuk continues to show confidence in technology, communications and media companies. Investments in information technology stocks accounted for 75% of the total 13F portfolio, according to the latest additions. The consumer’s discretionary sectors represent 11% of the portfolio, while investments in communication sectors make up about 6% of the portfolio. The majority of the companies in the fund’s portfolio are large equities.
Although Tor Minesuk’s reputation remains intact, the same cannot be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade, where its hedged returns could not keep up with the uncovered returns on market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that exceeded the S&P 500 ETFs by more than 78 percentage points since March 2017. Between March 2017 and February 5, 2021, our monthly newsletter returned 187.5% against 75.8% for SPY. Our stock selection outperformed the market by more than 111 percentage points. (see the details here). We were also able to identify in advance a select group of hedge fund holdings that are significantly inferior to the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% until November 16th. Therefore, we believe that hedge fund sentiment is an extremely useful indicator that investors should be aware of. You can subscribe to our free newsletter on our website to receive our stories in your inbox.
Let’s start by examining former SAC Capital portfolio manager Tor Minesuk’s top 10 stock choices for 2021 to determine if these positions have the ability to surpass the broader market return in 2021.
10. JD.Com (NASDAQ: JD)
Tor Minesuk’s strategy to launch a position in the Chinese e-commerce platform JD.com (NASDAQ: JD) in early 2020 worked for his hedge fund. This is because the shares of JD rose more than 100% in 2020 and extended the upward momentum to 2021. Mondrian Capital Management has increased its stake by 13% in JD.com in the fourth quarter.
Argosy Investors, which generated 29.8% on selected accounts in 2020, highlighted the strong business strategies of JD.com in an investor letter. Here’s what Argosy Investors indicated:
“JD.com has made conscious decisions to divide its business into its components, which in our opinion helps to surface the value of each company. JD’s business value is around USD 120 billion. USD today. JD divested its JD Health business to the value of DKK 28 billion. USD (like Teladoc in the US), could possibly smooth out its JD Cloud business (similar to AWS in the US), has sold shares in its JD Logistics business and shoots at a valuation of $ 40 billion in 2021 via a stock exchange offering, and JD Digits, which supplies supply chain and consumer loans, is expected to be valued at nearly $ 30 billion before Ant Financial was prevented by the Chinese government from conducting its IPO. The total value of these business segments within JD is about $ 98 billion, leaving $ 22 billion. To JD’s core business (and its cloud business), which is on track for over $ 100 billion. USD on sale this year and growing over 20% per year. Assuming a long-term margin of 5% for JD Retail, this segment generates USD 5 billion. In operating profit (EBIT). Given their strong market position, investors could value JD’s retail business alone at 20x EBIT and value JD retail at $ 100bn. In comparison, Amazon was valued at over $ 175 billion during the year it earned $ 100 billion in revenue, so we continue to believe that JD is undervalued despite a more competitive environment with Alibaba in China, than Amazon is facing in the United States. ”
9. Analog Devices, Inc. (NASDAQ: ADI)
Mondrian Capital Management has also benefited from its Analog Devices, Inc (NASDAQ: ADI) position in 2020 and 2021. Shipmaker shares grew 35% in the last twelve months, almost double the S&P 500 index. In addition, the company also offers large dividends to shareholders.
Its yield currently fluctuates around 1.62%. Its returns are fully supported by strong economic figures. The company generated double-digit growth in Q4 EPS and expects to maintain its economic growth momentum in 2021. Analog Devices is the ninth largest holding in Tor Minesuk’s 13F portfolio and accounts for 3.79% of the total portfolio.
8. Amazon.com (NASDAQ: AMZN)
Former SAC Capital portfolio manager Tor Minesuk’s has also held a stake in the largest e-commerce platform Amazon.com (NASDAQ: AMZN) since the fourth quarter of 2018. The hedge fund is bullish on Amazon’s future prospects as the company has raised its position in Amazon by 9% in the fourth quarter of 2020. The e-commerce giant is among the biggest contributors to its 2020 performance. Shares of Amazon have risen 54% in the last twelve months.
L1 Capital International Fund has also made strong comments about Amazon’s business strategies in an investor letter. Here’s what L1 Capital International Fund indicated:
“Several investments in the technology sector were trimmed by the valuation basis with the revenue used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe that the current share price under-appreciates:
– The consistency and longevity of Amazon’s growth potential in its key businesses;
– The importance of additional revenue streams such as Advertising that is high margins and growing fast; and
Strengthening barriers to competition and competitive advantage as a result of Amazon’s intensified investment in logistics and other infrastructure. ”
7. Intuit Inc. (NASDAQ: INTU)
Tor Minesuk has expressed confidence in Intuit Inc. (NASDAQ: INTU) and added a large position in the stock in the fourth quarter, making it the seventh largest stock in his hedge fund’s 13F portfolio. Shares of Intuit so far surpassed the broader market index in 2021.
L1 Capital International Fund believes that Intuit is a high quality company. Here is what L1 Capital stated to an investor letter:
“Intuit includes the consistency, predictability and longevity of growth we seek in high quality companies. Intuit currently operates through 2 main divisions: Financial and Business Management Software as well as Integrated Payroll Solutions, Trading Solutions Management Solutions and Small Business Financing in the United States and key global markets; and do-it-yourself and assisted income tax preparation software products and services sold in the United States and Canada. “
Adobe Systems (NASDAQ: ADBE)
The visual graphics software company Adobe Systems (NASDAQ: ADBE) is the sixth largest holding in Tor Minesuk’s portfolio. The hedge fund started a position in Adobe Systems in the 4th quarter and accounts for 4.60% of the total portfolio. Shares in Adobe Systems have risen 33% in the last twelve months.
Poland Capital Management, which returned 10.15% in the fourth quarter, highlighted few stocks including Adobe Systems in an investor letter. Here’s what Poland Capital Management indicated:
“Throughout the year 2020, one of the best players was Adobe, which we have owned for many years, and continues to benefit from being the gold standard for software in its respective fields, and the current environment has only served to accelerate customer demand and needs for their products and services. ”
To continue reading this article, go to Former SAC Capital Portfolio Manager Tor Minesuk’s Top 5 Stock Selection for 2021. Suggested Articles:
Information: No position. The article Former SAC Capital Prime Minister Tor Minesuk’s Top 10 Stock Choice for 2021 was originally released on Insider Monkey.
More Tags We Loveauto insurance definition of comprehensive is personal life insurance tax deductible travel insurance post office price auto insurance for less than 100 a month when to have full coverage auto insurance auto insurance 100 a month auto insurance report newsletter best insurance rates in co best auto insurance companies in usa home insurance