Roubaix Capital LLC, an investment management firm, published its ‘Roubaix Fund Composite’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 26.63% was recorded by the fund for the Q4 of 2020, outperforming its HFRI Equity Hedge benchmark that delivered a 14.50% return but below its Russell 2000 index that had a 31.37% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Roubaix Capital, in their Q4 2020 Investor Letter, said that Kura Sushi USA, Inc. (NASDAQ: KRUS) should benefit from the consumer rebound. Kura Sushi USA, Inc. is a Japanese Cuisine, technology enabled restaurant that currently has a $220.7 million market cap. For the past 3 months, KRUS delivered a decent 79.94% return and settled at $26.37 per share at the closing of February 16th.
Here is what Roubaix Capital has to say about Kura Sushi USA, Inc. in their Q4 2020 investor letter:
“Companies like Kura Sushi (KRUS) should benefit from the consumer rebound, but also have their own unique drivers of value over the next 2+ years. In the case of Kura Sushi, the company is one of the newest restaurant concepts in the U.S. market. With just under 30 stores in 2020, the opportunity for growth is vast to a targeted long-term goal of ~300 locations. The product offering is quality food at an affordable price, something that always resonates with consumers. The experience is unique due to the highly automated food ordering, delivery, and a ‘gamified’ plate return system that all operate on automated conveyor belts. In addition to entertainment value, it enables high throughput with minimal staff. This operating model makes the business more readily scalable nationally as it is less dependent on labor. With rents for many attractive locations in decline due to the pandemic, the concept has a good chance to secure good locations at favorable prices. Even at its modest size, Kura has shown the ability to deliver excellent margins. We expect the end of 2021 and the following year to be a breakout for the company, and the modest valuation versus high growth benchmarks provides a roadmap for solid returns for the stock.”
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Last November, we published an article telling that Kura Sushi USA, Inc. (NASDAQ: KRUS) was in 5 hedge fund portfolios. Its all time high statistics is 8. KRUS delivered a 13.18% return in the past 12 months.
Our calculations show that Kura Sushi USA, Inc. (NASDAQ: KRUS) does not belong in our list of the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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
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