Wasatch Core Growth Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 26.5% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned 31.4% in the same quarter. You should check out Wasatch’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, Wasatch highlighted a few stocks and Altra Industrial Motion Corp. (NASDAQ:AIMC) is one of them. Altra Industrial Motion Corp. (NASDAQ:AIMC) is a manufacturer of mechanical power transmission products – brakes, clutches, couplings, and the like. In the last three months, Altra Industrial Motion Corp. (NASDAQ:AIMC) stock gained 1.1% and on February 23rd it had a closing price of $58.26. Here is what Wasatch said:
“The top contributor to Fund performance for the fourth quarter was Altra Industrial Motion Corp. (AIMC). The company is a designer, producer and marketer of a wide range of mechanical power-transmission and motion-control equipment. Altra offers products such as industrial clutches and brakes, enclosed gear drives, open gearing, couplings, engineered bearing assemblies, linear components and other related items. After selling off several months ago along with other economically cyclical industrial names, the stock has made a strong comeback—which we think was enhanced by the management team’s actions to improve operating margins and reduce debt.”
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In Q3 2020, the number of bullish hedge fund positions on Altra Industrial Motion Corp. (NASDAQ:AIMC) stock increased by about 83% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in AIMC’s growth potential. Our calculations showed that Altra Industrial Motion Corp. (NASDAQ:AIMC) isn’t ranked among the 30 most popular stocks among hedge funds.
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.
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 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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.
