Polen Capital, an investment management firm, published its “Polen U.S. SMID Company Growth Composite” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.35% was delivered by the fund for the first quarter of 2021, trailing its Russell 2500 Growth benchmark that delivered a 2.49% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Polen Capital, in its Q1 2021 investor letter, mentioned Etsy, Inc. (NASDAQ: ETSY), and shared their insights on the company. Etsy, Inc. is a Brooklyn, New York-based e-commerce company that currently has a $21.2 billion market capitalization. Since the beginning of the year, ETSY delivered a -6.10% return, while its 12-month gains are up by 125.50%. As of May 25, 2021, the stock closed at $167.05 per share.
Here is what Polen Capital has to say about Etsy, Inc. in its Q1 2021 investor letter:
“Etsy continued to be a top contributor in the Portfolio during the first quarter. Etsy experienced record levels of demand in 2020. Throughout the beginning of this year, the business has continued to see accelerated growth trends. The company’s recently announced fourth quarter results provided numerous data points that highlight Etsy’s success in both broadening and deepening the relationship it has with buyers and sellers on its platform. In fact, Etsy now stands as the fourth largest e commerce site in the U.S. Repeat buyers have grown nearly 100% year-over-year, despite mask sales, which grew rapidly at the onset of the pandemic, shrinking to less than 5% of sales.
We continue to believe Etsy remains in the early stages of growing out its platform.
We remain confident in its ability to compound its value for shareholders at an attractive rate going forward.”
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Our calculations show that Etsy, Inc. (NASDAQ: ETSY) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Etsy, Inc. was in 53 hedge fund portfolios, compared to 56 funds in the fourth quarter of 2020. ETSY delivered a -20.74% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
