Wasatch Micro Cap Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 31.3% 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, Wasatch highlighted a few stocks and Pennant Group Inc. (NASDAQ:PNTG) is one of them. Pennant Group Inc. (NASDAQ:PNTG) is a home health care services company. In the last three months, Pennant Group Inc. (NASDAQ:PNTG) stock gained 10.4% and on February 24th it had a closing price of $57.25. Here is what Wasatch said:
“Pennant operates a network of approximately 75 home-health and hospice agencies, and 54 senior-living communities, located mostly in the western U.S. The company has a unique business model that encourages its field leadership to operate Pennant’s facilities more efficiently. Management has executed well, using strategic acquisitions to boost growth and profitability. A better-than-expected earnings report and positive forward guidance helped lift the company’s stock price during the fourth quarter.”
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In Q3 2020, the number of bullish hedge fund positions on Pennant Group Inc. (NASDAQ:PNTG) stock increased by about 50% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Pennant’s growth potential. Our calculations showed that Pennant Group Inc. (NASDAQ:PNTG) 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.
