Ensemble Capital, an investment management firm, published its “Ensemble Fund” first quarter 2021 investor letter – a copy of which can be seen here. A return of 3.80% was delivered by the fund in the Q1 of 2021, below its S&P 500 benchmark that delivered a 6.17% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Ensemble Capital, in their Q1 2021 investor letter, mentioned Masimo Corporation (NASDAQ: MASI) and shared their insights on the company. Masimo Corporation is an Irvine, California-based medical device company that currently has a $13.6 billion market capitalization. Since the beginning of the year, MASI delivered a -7.61% return, while its 12-month gains are up by 23.39%. As of April 20, 2021, the stock closed at $243.51 per share.
Here is what Ensemble Capital has to say about Masimo Corporation in their Q1 2021 investor letter:
“Notable detractors to the Fund’s returns this quarter (included) Masimo. Masimo (6.2% weight in the Fund) had a tremendous 2020, as hospital demand for medical-grade pulse oximetry monitors and sensors surged during COVID. While Masimo guided for a resumption of “normal” demand patterns in its core SET pulse oximetry business, investors were concerned about whether hospitals would fully utilize all the orders they made in 2020 and hold off on 2021 purchases. This may prove to be the case, but we think 2020 was also a transformative year for Masimo and unlocked new addressable markets in continuous monitoring, home-use of Masimo products, and new applications of their industry-leading technology. Hospitals and patients became more familiar with these new applications during COVID and we believe they will continue to gain traction in the coming years.”
Pixabay/Public Domain
Our calculations show that Masimo Corporation (NASDAQ: MASI) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Masimo Corporation was in 29 hedge fund portfolios, compared to 27 funds in the third quarter. MASI delivered a -5.80% 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.
