Wasatch Small Cap Growth Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 29.7% for the quarter, in line with its benchmark, the Russell 2,000 Growth Index which returned 29.6% 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 Kornit Digital Ltd. (NASDAQ:KRNT) is one of them. Kornit Digital Ltd. (NASDAQ:KRNT) is an Israeli-American international manufacturing company. In the last three months, Kornit Digital Ltd. (NASDAQ:KRNT) stock gained 12.4% and on April 1st it had a closing price of $100.21. Here is what the fund said:
“Kornit Digital Ltd. (KRNT) was a top contributor to Fund performance for the fourth quarter. Although Kornit is classified in the industrials sector, we consider it a high-tech company. Kornit produces proprietary digital-printing equipment, inks and other supplies for the textile industry. We think the company is positioned to benefit as the growing need for flexible inventory management drives increased adoption of on-demand digitalproduction solutions. While Kornit operates in an old-line manufacturing segment, the company has been benefiting from the implementation of a high-tech web-based system that simplifies textile printing. Kornit manages the design and manufacturing of the printers, but the company’s customers—including Amazon.com and Nike—operate the printers to meet specific needs for the quick turnaround of both large and small jobs. Even before the pandemic, Kornit had an annualized revenue growth rate in the high double-digit percentages. We expect Kornit to match or exceed that growth rate going forward because we believe the company and the market are still very early in their development, and the pandemic seems to have accelerated the adoption of new technologies.”
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Wasatch has been a long time Kornit Digital Ltd. (NASDAQ:KRNT) bull. In December 2020, we shared Wasatch’s bullish Kornit Digital Ltd. (NASDAQ:KRNT) thesis in this article.
In Q3 2020, the number of bullish hedge fund positions on Kornit Digital Ltd. (NASDAQ:KRNT) stock increased by about 100% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in KRNT’s growth potential. Our calculations showed that Kornit Digital Ltd. (NASDAQ:KRNT) 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.
