Prentice Capital was up three% net in December, bringing its total-12 months return to 53.six% net for 2020. In their December e-mail to investors, which was reviewed by ValueWalk, the Prentice group noted that they have protected capital for the duration of recent down markets.



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They also noted that the marketplace ended 2020 powerful. The S&P 50 was up 3.71%, although other indices also gained. Fears about the Georgia Senate runoff, the likelihood of disruption from President Donald Trump, and spiking virus numbers did not effect the market's climb.

The Prentice group mentioned that the consumer has been resilient and had money to spend on things rather than experiences or travel. They predicted that the Christmas season would be "surprisingly excellent" with a positive setup for 2021. The Prentice crew also explained firms that manufactured it by way of the pandemic would be in a considerably better predicament with significantly less competition, less costly rents, and "a buyer anxious to get out and about."


They also predict that the summertime will be one particular of the ideal for the basic enjoyment sector. Further, the Prentice crew noted that a lot of stocks previously reflect that sense of optimism, driven by the rollout of the COVID-19 vaccine. The stocks of profitless businesses soared, lie cruise lines, movie theaters and other entertainment industries.

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As a outcome, the expect this to be a very good year for stock choosing, adding that "the a single-way trade of 2020 is more than, and stocks will be discerning, with the critical emphasis getting on final results relative to expectations."
The Prentice staff also listed their 5 highest conviction longs. They are GoPro, Benefit Solutions, Coty, Fisker and United Normal Meals. As of December, they had 27 long positions and 43 shorts. Prentice is a minimal net lengthy/ brief equity manager that focuses on the U.S. client sector.