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 Sailpoint Technologies Holdings Inc. (NYSE:SAIL) is one of them. Sailpoint Technologies Holdings Inc. (NYSE:SAIL) is a technology company. In the last three months, Sailpoint Technologies Holdings Inc. (NYSE:SAIL) stock lost 27% and on May 17th it had a closing price of $44.28. Here is what the fund said:
“SailPoint Technologies Holdings, Inc. is a cybersecurity vendor in the identity governance space. It is a complementary technology to Ping (which grants access to networks and systems based on identity), but it differs in that SailPoint helps companies govern the constantly changing privileges of employee access to the appropriate applications and systems in its networks. Privilege and governance management (SailPoint) is effectively the “back end” to the “front end” (Ping) of access management. As employees’ positions change, so do their access requirements and SailPoint helps automate this process as well as providing full provisioning and audit tracking that ties to the appropriate regulatory and compliance mandates of the customer. The company’s products have become increasingly top of mind over the past year as industry cybersecurity leader FireEye and infrastructure tools vendor SolarWinds were both hacked in a state sponsored attack. This has driven increased demand for SailPoint’s solutions. SailPoint is currently transitioning from an on premise (one-time perpetual license payment plus some recurring maintenance payments) to a recurring subscription revenue model. This has resulted in slower top-line growth as overall contract revenues move from upfront payments to smaller annualized payments. However, when the transition is complete, we expect to see accelerating top-line growth that is nearly 100% recurring. This will garner a much higher market multiple. We have seen this movie before, most recently in our successful Varonis investment, and we expect strong annualized contract value growth as subscriptions increase over the next two to three years.”
In Q4 2020, the number of bullish hedge fund positions on Sailpoint Technologies Holdings Inc. (NYSE:SAIL) stock increased by about 10% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in SAIL’s growth potential. Our calculations showed that Sailpoint Technologies Holdings Inc. (NYSE:SAIL) 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.
