L1 Capital, an investment management firm, published its ‘L1 Capital International Fund’ first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 15% was recorded by the fund outperforming the benchmark by 8.7%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
L1 Capital International Fund, in its Q1 2021 investor letter, mentioned Louisiana-Pacific Corporation (NYSE: LPX), and shared their insights on the company. Louisiana-Pacific Corporation is a Nashville, Tennessee-based building material company that currently has a $7.4 billion market capitalization. Since the beginning of the year, LPX delivered a 86.28% return, impressively extending its 12-month gains to 246.03%. As of May 06, 2021, the stock closed at $69.24 per share.
Here is what L1 Capital International Fund has to say about Louisiana-Pacific Corporation in its Q1 2021 investor letter:
"Contributors to the gains were broad based, with the decision to selectively increase exposure to more cyclical sectors such as U.S. housing delivering strong returns. Recently, we further increased our exposure to U.S. housing through a new top 10 investment in Louisiana-Pacific Corporation. Louisiana-Pacific is a business in transition – rapidly evolving from a commodity-oriented forest products company to a specialty building solutions company. We expect a significant improvement in the quality of earnings over the coming years and near term we believe the market is significantly under-appreciating profitability during highly favourable operating conditions."
Our calculations show that Louisiana-Pacific Corporation (NYSE: LPX) 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, Louisiana-Pacific Corporation was in 41 hedge fund portfolios, compared to 40 funds in the third quarter. LPX delivered a 67.41% 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.