If you are looking for the best ideas for your portfolio you may want to consider some of Greenhaven Road Capital‘s top stock picks. Greenhaven Road Capital, an investment management firm, is bullish on PAR Technology Corp (NYSE:PAR) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on PAR Technology Corp (NYSE:PAR) stock. PAR Technology Corp (NYSE:PAR) is a provider of systems and service solutions for the hospitality industry. The stock is down 4.1% since the Greenhaven Road Capital’s pitch in February 2020. On a year-to-date basis, PAR Technology Corp (NYSE:PAR) stock has fallen by 2.4%.
On February 15, 2020, Greenhaven Road Capital had released its Q4 2019 Investor Letter. Greenhaven Road Capital said that PAR Technology Corp (NYSE:PAR) is poised to grow in 2020. This isn’t the first time Greenhaven Road Capital talked about PAR Technology Corp (NYSE:PAR) favorably either. The investment firm has been a long time PAR Technology Corp (NYSE:PAR) bull. A year ago we shared Greenhaven Road Capital’s bullish PAR Technology Corp (NYSE:PAR) thesis in this article.
Greenhaven Road Capital fund returned approximately 2% net in the fourth quarter and approximately 15.5% for 2019. The investment firm noted that its 2019 returns were below its benchmark the Russell 2000 Index.
Let’s take a look at comments made by Greenhaven Road Capital about PAR Technology Corp (NYSE:PAR) in the letter.
“PAR Technology (PAR) – Many of you met PAR CEO Savneet Singh at our annual meeting, where he engaged in a fireside chat. This remains a “jockey bet” for Greenhaven. There will undoubtedly be bumps along the way as he implements his strategy, but so far Savneet has improved the balance sheet, strengthened the team, and made two strategic acquisitions. It is highly likely that within the next year, the company will divest a legacy defense contracting business, which will not only provide additional growth resources, but also make PAR a much simpler company for investors to understand and invest in.
PAR is a business in transition, actively investing in and growing its “good” business, a restaurant point of sale (POS) system. The POS system serves as the spine of a restaurant, and PAR is actively adding functionality and revenue streams from areas such as payments, inventory management, data analytics, and mobile order management (integrating with UberEats, etc.). PAR should aggressively grow the number of locations using the software and the revenue per location over the next three years.”
In Q1 2020, the number of bullish hedge fund positions on PAR Technology Corp (NYSE:PAR) stock decreased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with PAR’s upside potential. Our calculations showed that PAR Technology Corp (NYSE:PAR) 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.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we scour multiple sources to uncover the next great investment idea. There is a lot of volatility in the markets and this presents amazing investment opportunities from time to time. For example, this trader claims to deliver juiced up returns with one trade a week, so we are checking out his highest conviction idea. A second trader claims to score lucrative profits by utilizing a “weekend trading strategy”, so we look into his strategy’s picks. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We recently recommended several stocks partly inspired by legendary Bill Miller’s investor letter. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.