I have read a post shared by Insider Monkey regarding the Best Mid-cap Stocks in 2021 from the portfolio of Brian Higgins who is a billionaire and co-founder of King Street Capital Management company. The focus of the investment firm is on underrated and less popular companies rather than popular internet stocks and high-growth technology firms. This is also found that this firm is making investments in different troubled firms that have strong future fundamental as well.
“Its 13F securities portfolio is mainly focused on consumer discretionary, finance, healthcare, real estate, energy sectors. The fund has also expanded a small portion of its portfolio towards consumer staples, utilities, and communications sectors.
The firm seeks to adjust its portfolio on a quarterly basis to capitalize on profit-making opportunities. The billionaire Brian Higgins seeks to generate returns in the short-term instead of holding stocks for the long-time. The average time held for the top ten stocks stands around 1.55 quarters and the time held for the top 20 positions averages around 1.90 quarters.”
Let us start with the 5 best mid-cap stocks in 2021 by exploring the stock portfolio of Brian Higgins to check which stocks assisted his fund to get the leading position in the Q4 of 2020. The performance shown by the top 5 mid-cap stocks has a huge influence on the overall performance of the hedge fund. The first mid-cap stock in the portfolio of King Street is Aramark. The fund capitalized on this company in the Q2 and Q3 of 2020. The strategy of this hedge fund of purchasing the shares of distressed companies worked completely for Aramark. The reason is that the share value of this company rallied in the past 6 months by 75%. The spread of the Coronavirus pandemic had hit harder the share value of Aramark because of the imposition of lockdowns as the company is providing healthcare, food, uniform education services, sports, business, and leisure services to worldwide clients. The 2nd biggest mid-cap stock holding present in the stock portfolio of Brian Higgins is Sabre Corporation. In the September quarter, the hedge fund increased its position in the stake by around 650%. The overall value of this stock in the entire portfolio of King Street is around 10.52%. During the last 6 months, the share value of Sabre rallied by almost 50% thanks to the process of strengthening the tourism sector. There is still more information about these and other stocks which you can explore at 10 Best Mid-Cap Stocks To Buy According To Billionaire Brian Higgins shared by Insider Monkey.