Wasatch Micro Cap Fund recently released its Q2 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 3.11% for the quarter, underperforming its benchmark, the Russell Microcap Index which returned 4.14% 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 Q2 2021 Investor Letter, the fund highlighted a few stocks and Xpel Inc. (NASDAQ:XPEL) is one of them. Xpel Inc. (NASDAQ:XPEL) develops and manufactures automotive protection products. In the last three months, Xpel Inc. (NASDAQ:XPEL) stock lost 7%. Here is what the fund said:
“The strongest contributor to Fund performance for the quarter was XPEL, Inc. (XPEL). The company offers automotive paint and surfaceprotection films, automotive and architectural window films and ceramic coatings. XPEL has experienced robust growth as buyers of luxury vehicles adopt products previously sold primarily to automotive enthusiasts. Shares of XPEL moved higher in May after the company reported record top- and bottom-line results in its most recent quarter. Management cited strong demand across all regions—particularly in China, where the Covid19 outbreak hampered sales during the same quarter last year.”
In February, we had shared Wasatch Micro Cap Fund XPEL’s thesis in this article.
In Q3 2020, the number of bullish hedge fund positions on Xpel Inc. (NASDAQ:XPEL) stock increased by about 200% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in XPEL’s growth potential. Our calculations showed that Xpel Inc. (NASDAQ:XPEL) 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.
