FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
FAM Funds, in their Q4 2020 Investor Letter said that they encashed their position in PC Connection, Inc. (NASDAQ: CNXN), and they were able to exit with gains. PC Connection, Inc. is a technology solutions provider that currently has a $1.28 billion market cap. For the past 3 months, CNXN delivered a 7.55% return and settled at $48.99 per share at the closing of January 28th.
Here is what FAM Funds has to say about PC Connection, Inc. in their investor letter:
“After a strong run, we sold long-term holding PC Connection (CNXN). CNXN, a distributor of computer equipment and software, is a solid but cyclical business. After reporting strong earnings for several quarters, the stock traded at a valuation considerably above its historical norm. Furthermore, while we consider the business and leadership above average, we thought we could do even better.”
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Last November 2020, we published an article telling that PC Connection, Inc. (NASDAQ: CNXN) was in 4 hedge fund portfolios. Its all time high statistics is 15. CNXN delivered a -1.71% return in the past 12 months.
Our calculations show that PC Connection, Inc. (NASDAQ: CNXN) 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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Disclosure: None. This article is originally published at Insider Monkey.
