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Vulcan Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Large Cap Composite fund posted a return of 24.5% for the second quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.5% in the same quarter. You should check out Vulcan Value Partners' top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Vulcan Value Partners' highlighted a few stocks and TransDigm Group Inc (NYSE:TDG) is one of them. TransDigm Group Inc (NYSE:TDG) develops, distributes and manufactures commercial and military aerospace components. Year-to-date, TransDigm Group Inc (NYSE:TDG) stock lost 9.9% and on August 27th it had a closing price of $498.32. Here is what Vulcan Value Partners' said:
"TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Most of its products are small volume, low cost items that are sole sourced from TransDigm. It is economically unlikely for a new company to compete on any particular product because volumes on individual components are not large enough to justify the investment in manufacturing facilities and regulatory approval. The company produces high levels of free cash flow, has long equity duration, a strong business model, and an effective, shareholder-oriented management team who are good capital allocators."
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In Q1 2020, the number of bullish hedge fund positions on TransDigm Group Inc (NYSE:TDG) stock decreased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers don't seem to agree with TransDigm's growth potential. Our calculations showed that TransDigm Group Inc (NYSE:TDG) isn't ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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.