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 Stride Inc. (NYSE:LRN) is one of them. Stride Inc. (NYSE:LRN) is a technology-based education company. In the last three months, Stride Inc. (NYSE:LRN) stock gained 50% and on April 1st it had a closing price of $31.75. Here is what the fund said:
“The largest detractor from Fund performance for the fourth quarter was Stride, Inc. (LRN), formerly known as K12, Inc. This technology-based education company offers proprietary curriculum, software and services created for online delivery to students in kindergarten through 12th grade. The stock declined despite reasonably strong enrollment. In hindsight, we underestimated investor concerns that there’ll be considerably lower demand for the company’s services as the economy reopens more fully. Nevertheless, we believe those concerns may be overblown and it’s possible the pandemic has changed parents’ and students’ mindsets toward online education. Therefore, we think annual growth—even after the pandemic ends—could be at double-digit rates. This is because the industry itself and Stride’s market share both have plenty of room to expand. Moreover, any reluctance to give Stride a try could be reduced because the company’s fees are paid by schools, not by parents. And Stride is expanding by also offering at-home services that are integrated with school-based education.”
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In December 2020, we published an article revealing that Stride Inc. (NYSE:LRN) was one of the 10 best education stock to buy.
Our calculations showed that Stride Inc. (NYSE:LRN) 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.
