Baron Discovery Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Discovery Fund returned 25.54% (institutional shares). This was 4.07% lower 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 Q4 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and Vital Farms Inc. (NASDAQ:VITL) is one of them. Vital Farms Inc. (NASDAQ:VITL) provides agricultural food products. In the last three months, Vital Farms Inc. (NASDAQ:VITL) stock lost 27% and on February 1st it had a closing price of $25.50. Here is what Baron Discovery Fund said:
“Vital Farms, Inc., a producer of butter and pasture-raised eggs, underperformed during the quarter after reaching its post-IPO highs. While the company beat Street expectations for the third quarter, investors shifted near-term focus to more immediate beneficiaries of the COVID-19 vaccine. Longer-term, we expect Vital Farms to benefit from increased consumer focus on better-for-you and to grow its platform through category expansion and distribution gains in natural and traditional grocery stores.”
Pixabay/Public Domain
Baron Discovery Fund has been a long time Vital Farms Inc. (NASDAQ:VITL) bull. In December 2020, we shared Baron Discovery Fund’s bullish VITL’s thesis in this article.
In Q3 2020, a total of 11 of the hedge funds tracked by Insider Monkey were long on this stock, a change of 11 from the previous quarter (see the chart here), so a number of other hedge fund managers believe in VITL’s growth potential. Our calculations showed that Vital Farms Inc. (NASDAQ:VITL) 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.
