Artisan Global Has High Hopes for Renewable Energy Company RWE (RWE.DE)

Jose Karlo Mari Tottoc
·3 min read

Artisan Global Discovery Fund, a global investment management firm, published its third-quarter 2020 investor letter – a copy of which can be downloaded here. A positive return of 11.79% was recorded by the fund for the 3rd Quarter of 2020, ahead of its MSCI All Country World benchmark that returned 8.13%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Artisan Partners, in their Q3 2020 Investor Letter said that they were able to distinguish a value in RWE Aktiengesellschaft (XETRA: RWE.DE) and initiated a position in the company. RWE AG is one of the largest developers of renewable energy primarily onshore and offshore wind in the US and Europe that currently has a $25.926 billion market cap. For its latest Quarterly Revenue Growth (YOY), RWE delivered an 11.40% return and settled at $38.34 per share at the closing of January 14th.

Here is what Artisan Global Discovery Fund has to say about RWE Aktiengesellschaft in their Investor Letter:

"We started new investment campaigns in RWE. RWE is one of the largest developers of renewable energy—primarily onshore and offshore wind—in the US and Europe. We believe the company will benefit from the increasing emphasis to convert the global power grid to lower carbon-emitting sources—especially in Europe—over the next decade. RWE expects to double its renewable capacity over the next five years and has excellent visibility into this project pipeline (50% secured). Not only does an increased reliance on renewable energy sources benefit the environment, but it also shelters RWE’s earnings from commodities price swings. The company raised capital during the quarter, and we used the pullback to initiate a GardenSM position."

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Given its positive future outlook, however, our calculations showed that RWE Aktiengesellschaft (XETRA: RWE.DE) 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

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