Wasatch Micro Cap Value Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 26.1% for the quarter, underperforming its benchmark, the Russell Microcap 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, the fund highlighted a few stocks and Green Thumb Industries Inc. (NYSE:GTBIF) is one of them. Green Thumb Industries Inc. (NYSE:GTBIF) engages in the manufacture and distribution of branded cannabis products. In the last three months, Green Thumb Industries Inc. (NYSE:GTBIF) stock gained 18.4% and on April 1st it had a closing price of $29. Here is what the fund said:
“The top contributor to Fund performance for the fourth quarter was Green Thumb Industries, Inc. (GTBIF), a pharmaceutical company that manufactures and distributes medical marijuana and cannabis products. Unlike many other companies in the marijuana business, Green Thumb isn’t just a grower of the plant. Green Thumb is viewed by customers as a high-quality retail brand and is vertically integrated, which means the company also controls marketing and sales. Currently, Green Thumb is required to pay taxes based on gross profits (revenues minus “costs of goods sold”). This could change if regulations are revised to allow marijuana companies to pay taxes based on operating profits—which are lower than gross profits because “operating expenses” (such as selling, general and administrative expenses) are also subtracted. Beyond potential improvement to Green Thumb’s tax burden, we’ve been very impressed with the management team. Moreover, Green Thumb and many of its competitors got a boost during November as voters approved a series of statewide ballot proposals to legalize the expanded use of marijuana.”
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Our calculations showed that Green Thumb Industries Inc. (NYSE:GTBIF) 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.
