Alger, an investment management firm, published its “Alger Spectra Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter of 2021, the largest portfolio sector weightings were Information Technology and Consumer Discretionary. Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the first quarter of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alger Spectra Fund, in their Q1 2021 investor letter, mentioned Jeffrey Bezos‘ Amazon.com, Inc. (NASDAQ: AMZN) and shared their insights on the company. Amazon.com, Inc. is a Bellevue, Washington-based e-commerce company that currently has a $1.7 trillion market capitalization. Since the beginning of the year, AMZN delivered a 3.53% return, extending its 12-month gains to 40.88%. As of April 19, 2021, the stock closed at $3,372.01 per share.
Here is what Alger Spectra Fund has to say about Amazon.com, Inc. in their Q1 2021 investor letter:
“Long position Amazon.com, Inc. was among the top detractors from performance. Amazon continued to generate strong high unit volume growth by taking market share from brick and mortar retailing. In the recent quarter, retail sales surprised notably on the upside as coronavirus has accelerated the adoption of e-commerce. Some of these shoppers will remain loyal beyond the end of social distancing further pushing the permanent market share gain of e-commerce at the expense of brick and mortar. Amazon.com’s guidance includes a modest deceleration in the retail sales growth but at still strong levels in the upcoming quarter. The same accelerated trend in adoption was also seen at Amazon’s AWS as corporate America embraced cloud offerings in the new distributed workforce environment although profitability in this segment fell short of expectations due to Amazon.com investing ingrowth initiatives.
Despite the continuing gains in these large addressable markets, Amazon’s share price detracted from performance as investors wait to see how the significant 2020 growth comparisons generated during the economic shutdown affect Amazon’s reported growth rates in 2021. Meanwhile, value versus growth equity returns in recent months indicate that investors possibly prefer to chase the transitory performance associated with pure play beneficiaries of economic re-openings while eschewing the potential compounding benefits garnered from high-quality, long-duration innovation led growers like Amazon.”
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Our calculations show that Amazon.com, Inc. (NASDAQ: AMZN) tops our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Amazon.com, Inc. was in 273 hedge fund portfolios, compared to 245 funds in the third quarter. AMZN delivered an 8.63% 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.
