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 Kinsale Capital Group Inc. (NASDAQ:KNSL) is one of them. Kinsale Capital Group Inc. (NASDAQ:KNSL) is an insurance company. In the last three months, Kinsale Capital Group Inc. (NASDAQ:KNSL) stock lost 20% and on May 14th it had a closing price of $161.53. Here is what the fund said:
“Kinsale Capital Group, Inc. detracted from performance despite reporting continued strong earnings growth. Earnings were strong and premium growth of 34% was ahead of expectations, but it decelerated from the prior quarter against a tougher comparison. The stock meaningfully increased last year, which may have led to some profit taking this quarter. We continue to own Kinsale because we believe the company has a long runway for growth in an attractive segment of the insurance market.”
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Baron Discovery Fund has been a long time Kinsale Capital Group Inc. (NASDAQ:KNSL) bull. In December 2020, we shared Baron Discovery Fund’s bullish KNSL’s thesis in this article.
In Q3 2020, the number of bullish hedge fund positions on Kinsale Capital Group Inc. (NASDAQ:KNSL) stock increased by about 14% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in KNSL’s growth potential. Our calculations showed that Kinsale Capital Group Inc. (NASDAQ:KNSL) 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.
