Buy XPO Logistics (NYSE: XPO) and IQVIA Holdings (NYSE: IQV).

Today we are adding two stocks to our portfolio. 

The first is XPO Logistics (NYSE: XPO). We found this stock in a relatively new and small, but very successful, hedge fund called Spruce House Investment Management. We have found records only going back to 2014, but in relative-performance terms, Spruce has beaten the S&P 500 by an estimated 65 percentage points from the beginning of that year to the present.

We are adding the top holding in this concentrated fund, which only has 9 stock holdings as of the end of the third quarter. Indeed, concentrated portfolios run by excellent stock pickers are usually the best places to find standouts. Spruce owns 7.75 million shares, or 6.5 percent, of XPO. 

The second is IQVIA (NYSE: IQV), a stock from Glenview Capital Management, one of the most successful hedge funds. Founded and run by Larry Robbins, Glenview was ranked by Barrons as the best fund of 2014. After a couple of under-performing years in 2015 and 2016, Glenview has bounced back so far in 2017, outperforming the S&P 500 by an estimated 5 percentage points in the first half. Over the past 10 years, Glenview has outperformed the S&P 500 by nearly 70 percentage points.

Glenview owns 8.9 million shares, or 4 percent, of IQVIA and the stock is the fifth-largest holding in the portfolio. The company used to be known as Quintiles IMS Holdings and traded under the symbol Q, but it has just rebranded itself IQVIA (pronounced I-Q-Via) last week.

We will have more information on the stocks in upcoming updates.