Here’s Why Upslope Capital Exited its Evercore (EVR) Position in Q1 2021

Jose Karlo Mari Tottoc
·3 min read

Upslope Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.9% was reported by the fund for the Q1 of 2021, below both its S&P Midcap 400 ETF and HFRX Equity Hedge benchmark that had a 13.6% and 2.7% return respectively in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Upslope Capital Management, in their Q1 2021 investor letter, mentioned Evercore Inc. (NYSE: EVR) and shared their insights on the company. Evercore Inc. is a New York-based investment banking company that currently has a $5.7 billion market capitalization. Since the beginning of the year, EVR delivered a 25.18% return, extending its 12-month gains to 148.82%. As of April 16, 2021, the stock closed at $137.25 per share.

Here is what Upslope Capital Management has to say about Evercore Inc. in their Q1 2021 investor letter:

"Evercore is a leading boutique investment bank, mostly focused on M&A advisory. We exited the position in Q1. The business is performing well, but it is extremely cyclical and was a “Tactical” holding (for which I exhibit tighter valuation discipline). When we bought shares last March, they were cheap even assuming trough earnings. Today, estimates are above prior cycle peak and valuation is less compelling."

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Our calculations show that Evercore Inc. (NYSE: EVR) 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, Evercore Inc. was in 28 hedge fund portfolios, compared to 27 funds in the third quarter. EVR delivered a 15.56% 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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Disclosure: None. This article is originally published at Insider Monkey.