FAM Funds: “Floor & Decor (FND) Has Not Only Survived, But Thrived”

FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

FAM Funds, in their Q4 2020 Investor Letter said that they acquired a position in Floor & Decor Holdings, Inc. (NYSE: FND), and continuously holds the company because of its attractive valuation. Floor & Decor Holdings, Inc. is a specialty retail company that currently has a $9.6 billion market cap. For the past 3 months, FND delivered a 27.15% return and settled at $93.86 per share at the closing of January 28th.

Here is what FAM Funds has to say about Floor & Decor Holdings, Inc. in their investor letter:

“In addition to buying new positions as prices fell, we added to several existing positions. We think Floor & Decor (FND) can take share from the big-box hardware stores and “mom-and-pop” flooring stores for years to come. While it was shocking to see so many of their stores closed, we felt confident they would survive; in part, because of their quick pivot to using FaceTime to serve customers and allowing order pickups off the loading docks. FND has not only survived, but thrived as more consumers focus on home improvements.”

Photographee.eu/Shutterstock.com

Last December 2020, we published an article telling that Floor & Decor Holdings, Inc. (NYSE: FND) was in 42 hedge fund portfolios. Its all time high statistics is 44. FND delivered an 88.24% return in the past 12 months.

Our calculations show that Floor & Decor Holdings, Inc. (NYSE: FND) does not belong in our list of 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

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.

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

Sam Son

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