Alger Mid Cap Focus Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. Class Z shares of the Alger Mid Cap Focus Fund outperformed the Russell Midcap Growth Index during the third quarter of 2020. You should check out Alger Mid Cap Focus Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Alger Mid Cap Focus Fund highlighted a few stocks and Vertex Inc. (NASDAQ:VERX) is one of them. Vertex Inc. (NASDAQ:VERX) is a software company. In the last three months, Vertex Inc. (NASDAQ:VERX) stock gained 45.8% and on December 28th it had a closing price of $33.18. Here is what Alger Mid Cap Focus Fund said:
“Vertex is a leading global provider of indirect tax software and solutions. Vertex has been a pioneer in the tax technology space for over 40 years but only recently held its initial public offering in July. The IPO priced at $19 a share, above its $14 to $16 initial range, and closed the first day of public trading up nearly 29%. Outside of this IPO, Vertex underperformed as the Covid-19 pandemic continued to negatively impact sales cycles for enterprise software. Vertex is also investing in its selling and marketing organizations and research and development, which is negatively impacting Vertex’s operating margins. Longer term, we believe that Vertex’s indirect tax market is in the early stages of a digitalization tailwind and that Vertex’s strategic investments can potentially position the company to capitalize on this growing opportunity when the sales environment improves.”
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At the end of September, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15 from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in VERX a year ago. Our calculations showed that Vertex Inc. (NASDAQ:VERX) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.
