Miller Value Partners recently released its Q2 2021 Investor Letter, a copy of which you can download here. The Miller Opportunity Trust Class I gained 4.18%, underperforming its benchmark, the S&P 500 Index which returned 8.55% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and ADT Inc. (NYSE:ADT) is one of them. ADT Inc. (NYSE:ADT) provides security, automation, and smart home solutions to consumer and business customers in the United States. In the last three months, ADT Inc. (NYSE:ADT) stock lost 28%. Here is what the fund said:
“ADT Inc. (ADT) was a top performer over the period returning 28.12%. The company reported 1Q21 results that beat expectations with revenues of $1,305M, a Year-over-Year (YoY) decline of -4% versus the -7% expected, and EBITDA of $542M beating consensus of $525M. The company maintained full year guidance of revenue $5,050M-$5,250M (versus consensus of $5,189M), adjusted EBITDA of $2.1-2.2B (versus consensus of $2.16B) and Adjusted FCF of $450-550M (versus consensus of $447M). The company reiterated that they expect full year RMR (recurring monthly revenue) to grow in the mid-teens while they expect to spend an additional $150-250M on SAC (subscriber acquisition costs) with the majority of the spend hitting in the first half of the year. The company expects the commercial business to reach pre-COVID levels by the end of 2021. The company will continue to invest in their own internal IP spending ~$50M this year on next-gen solutions.”
In Q1 2021, the number of bullish hedge fund positions on ADT Inc. (NYSE:ADT) stock decreased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in ADT’s growth potential. Our calculations showed that ADT Inc. (NYSE:ADT) isn’t ranked among the 30 most popular stocks among hedge funds.
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.