Is Compass Inc. (COMP) A Good Investment Choice?

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge Mid Cap Growth Strategy outperformed the benchmark Russell Midcap Growth Index. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned Compass, Inc. (NYSE: COMP), and shared their insights on the company. Compass, Inc. is a US-based real estate broker that currently has a $5.2 billion market capitalization. Since the beginning of the year, COMP delivered a 21.79% return, extending its 12-month gains to 129.74%. As of June 02, 2021, the stock closed at $13.48 per share.

Here is what ClearBridge Investments has to say about Compass, Inc. in its Q1 2021 investor letter:

“Compass also falls in the software camp. The real estate technology company and brokerage is disrupting the traditional residential broker market with tools that improve operational efficiency for brokers. Their tools have first-mover advantage in the industry and are attracting top brokers from the best markets, resulting in significant market share gains in a short period of time.”

Our calculations show that Compass, Inc. (NYSE: COMP) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. COMP delivered a 4.84% 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.