June 1, 2023
Here’s Why You Should Consider Investing in Upstart Holdings (UPST) – Yahoo Finance

Here’s Why You Should Consider Investing in Upstart Holdings (UPST) – Yahoo Finance

Third Point Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A portfolio return of +12.5% was delivered by the flagship Offshore Fund, bringing year-to-date returns to +29.5%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Third Point Management, in its Q3 2021 investor letter, mentioned Upstart Holdings, Inc. (NASDAQ: UPST) and discussed its stance on the firm. Upstart Holdings, Inc. is a San Mateo, California-based consumer lending company with a $26.8 billion market capitalization. UPST delivered a massive 745.96% return since the beginning of the year and it closed at $344.73 per share on November 01, 2021.

Here is what Third Point Management has to say about Upstart Holdings, Inc. in its Q3 2021 investor letter:

“Our top winners on a percentage basis in Q3 were our two largest positions (which includes) Upstart, up 153%. Upstart has started to upend the FICO-dependent, $84 billion unsecured personal loan market with its AI-driven underwriting approach and is ramping up its footprint in the $685 billion auto lending market. In its most recent earnings report, the company raised its full-year revenue estimates by 25%.”

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Based on our calculations, Upstart Holdings, Inc. (NASDAQ: UPST) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. UPST was in 21 hedge fund portfolios at the end of the first half of 2021, compared to 13 funds in the previous quarter. Upstart Holdings, Inc. (NASDAQ: UPST) delivered a 158.40% return in the past 3 months.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. Recently we came across a high-growth stock that has tons of hidden assets and is trading at an extremely cheap valuation. We go through lists like the 10 best growth stocks to buy to pick the next Tesla that will deliver a 10x return. 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 homepage.

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

Source: https://finance.yahoo.com/news/why-consider-investing-upstart-holdings-174051560.html

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