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 Systemax Inc (NYSE:SYX) is one of them. Systemax Inc (NYSE:SYX) is a direct marketer of brand name and private label industrial and business equipment and supplies. In the last three months, Systemax Inc (NYSE:SYX) stock gained 17.8% and on April 1st it had a closing price of $42.27. Here is what the fund said:
“Another significant contributor was Systemax, Inc. (SYX), an extremely well-managed company that offers industrial equipment, material-handling services, technology products and accessories. The company’s marketing and distribution platform includes e-commerce websites, catalogs, social media and direct-sales representatives. Well before the start of 2020, Systemax had invested heavily to improve its offerings—and we believe that investment has been paying off with increased revenues and profits. Moreover, the stock has benefited from optimism surrounding vaccinations. While we still hold Systemax, we recently trimmed our position at levels much higher than our initial purchase price.”
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In Q3 2020, the number of bullish hedge fund positions on Systemax Inc (NYSE:SYX) stock increased by about 36% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in SYX’s growth potential. Our calculations showed that Systemax Inc (NYSE:SYX) 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.
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
