Alluvial Capital Management, LLC, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 28.4% was recorded by the fund for the year end 2020, outperforming the Russell MicroCap TR that returned 21%, its Russell 2000 benchmark that delivered a 20%. return, and its MSCI World Sm+MicroCap NR index with 16%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alluvial Capital Management, in their Q4 2020 Investor Letter said that the another contributor for their 2020 earnings was Rand Worldwide, Inc. (NYSE: RWWI), and accordingly, the long-term trend of the company is thoroughly intact. Rand Worldwide, Inc. is a premier technology solutions and professional services provider that currently has a $428.8 million market cap. For the past 3 months, RWWI delivered a -2.89% return and settled at $13.45 per share at the closing of February 2nd.
Here is what Alluvial Capital Management has to say about Rand Worldwide, Inc. in their investor letter:
“Rounding out 2020’s big winners is Rand Worldwide, a reseller of design and engineering software from Autodesk and others that also provides training and support. It’s a fine business, earning excellent returns on capital and benefitting from positive long-term trends in software usage. It also happens to be majority owned by one of the sharpest investors in small public entities, Peter Kamin. The man simply knows how to make money. Rand’s fiscal 2021 results will show decreased revenue and earnings as some sales promotions fail to repeat, but the long-term trend is thoroughly intact. Mr. Kamin and his team will keep on stewarding shareholder dollars well.”
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RWWI delivered a 16.45% return in the past 12 months. However, our calculations show that Rand Worldwide, Inc. (NYSE: RWWI) does not belong in our list of 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
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