Wasatch Advisors, an employee-owned investment manager, published its ‘Wasatch Small Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 4.48% was recorded by the fund for the Q3 of 2020, above its Russel 2000 Value benchmark that returned 2.56%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Wasatch Advisors, in their Q3 2020 Investor Letter said that they believe in the abilities of Eagle Bancorp, Inc. (NASDAQ: EGBN) to navigate the difficult situation we have now just like what it did last 2008 market crash, making them acquire a position in the bank company. Eagle Bancorp, Inc. is a registered bank holding company that currently has a $1.4 billion market cap. For the past 3 months, Eagle Bancorp, Inc. delivered a 53.67% return and settled at $45.02 per share at the closing of January 15th.
Here is what Wasatch Advisors has to say about Eagle Bancorp, Inc. in their Investor Letter:
“We remain on the lookout for opportunities to make gradual additions to the Fund on a stock-by-stock basis. During the most recent quarter, for example, we added a position in Eagle Bancorp, Inc. (EGBN), a bank with a strong presence in the Washington D.C. beltway. Eagle has a history of navigating difficult credit environments—most notably the financial crisis of 2008 to 2009. We therefore believe the stock represented an attractive value at a price that was well off of its pre-Covid levels.”
Copyright: ppart / 123RF Stock Photo
Last December 2020, we published an article telling that Eagle Bancorp, Inc. (NASDAQ: EGBN) was in 13 hedge fund portfolios. Its all time high statistics is 19. EGBN delivered a 9.42% return YTD.
As of September 2020, Wasatch Advisors had a 2.9 million share position in EGBN that amounted to $78 million. However, our calculations showed that Eagle Bancorp, Inc. (NASDAQ: EGBN) does not belong to 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
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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 website.
Disclosure: None. This article is originally published at Insider Monkey.
