Baron Discovery Fund recently published its first-quarter commentary – a copy of which can be downloaded here. During the first quarter of 2021, the Baron Discovery Fund returned 7.5% (institutional shares). This was 2.59% higher than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Ichor Holdings Ltd. (NASDAQ:ICHR) is one of them. Ichor Holdings Ltd. (NASDAQ:ICHR) engages in designing, engineering, and manufacturing fluid delivery subsystems for semiconductor capital equipment. In the last three months, Ichor Holdings Ltd. (NASDAQ:ICHR) stock gained 46.3% and on April 30th it had a closing price of $55.77. Here is what the fund said:
“Ichor Holdings, Ltd. supplies critical gas and chemical delivery subsystems to semiconductor equipment manufacturers. Ichor’s subsystems are incorporated into etch, deposition, and lithography tools that accomplish key steps in the semiconductor manufacturing process. Shares of Ichor were up during the first quarter as the semiconductor upcycle continued and Ichor gained market share through strong execution. Not too long ago, the overall level of spending on semiconductor capital equipment (“SCE”) was expected to be around $40 billion to $50 billon at the peak of the cycle. Now, due to many factors including increased chip density in many products, electric vehicle requirements, and semiconductor nationalism (where countries view strategic production within their borders as critical), some are expecting an SCE cycle peak at over $100 billion. It is likely that the growth in SCE spending will be more sustainable than in the past. We believe Ichor’s leading market position, long-term customer relationships, and strong management set it up to not only ride this huge secular trend, but also to outgrow the market for years to come.”
Photo by Nicholas Cappello on Unsplash
In Q3 2020, the number of bullish hedge fund positions on Ichor Holdings Ltd. (NASDAQ:ICHR) stock decreased by about 19% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in ICHR’s growth potential. Our calculations showed that Ichor Holdings Ltd. (NASDAQ:ICHR) 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.
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Disclosure: None. This article is originally published at Insider Monkey.
