ClearBridge Investments, an investment management firm, published its “All Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge All Cap Growth Strategy outperformed its Russell 3000 Growth Index benchmark during the first quarter. On an absolute basis, the Strategy had gains across eight of the 10 sectors in which it was invested (out of 11 sectors total). You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and DocuSign Inc. (NASDAQ:DOCU) is one of them. DocuSign Inc. (NASDAQ:DOCU) allows organizations to manage electronic agreements. In the last three months, DocuSign Inc. (NASDAQ:DOCU) stock gained 19%. Here is what the fund said:
“DocuSign is the leading provider of electronic agreement services for businesses, with its eSignature offering allowing agreements to be transacted digitally which holds appeal for both small and large organizations. While its business exhibited strong user uptake and revenue growth prior to the health pandemic, underlying adoption accelerated as businesses were forced to “go remote” and limit in-person contact. Unlike some trends witnessed during the COVID-19 pandemic which stand to be fleeting, in the emerging “anywhere economy” we do not believe organizations will return to the old, less environmentally friendly and error-plagued method of paper agreements. We see continual success in core eSignature with bright prospects for expanding into a much broader set of digital services, while simultaneously international markets remain underpenetrated.”
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Earlier this month, we published an article revealing that DocuSign Inc. (NASDAQ:DOCU) was one of the 10 best stocks to buy now for your child.
In Q4 2020, the number of bullish hedge fund positions on DocuSign Inc. (NASDAQ:DOCU) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in DOCU’s growth potential. Our calculations showed that DocuSign Inc. (NASDAQ:DOCU) 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 leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks 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 homepage:
Disclosure: None. This article is originally published at Insider Monkey.
