Brown Advisory recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Small-Cap Fundamental Value Fund posted a return of 20.59% for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 18.91% in the same quarter. You should check out Brown Advisory’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, Brown Advisory highlighted a few stocks and Onto Innovation Inc. (NYSE:ONTO) is one of them. Onto Innovation Inc. (NYSE:ONTO) is a semiconductor manufacturing company. Year-to-date, Onto Innovation Inc. (NYSE:ONTO) stock lost 3.9% and on July 23rd it had a closing price of $36.58. Here is what Brown Advisory said:
“Onto Innovation (formerly Rudolph Technologies) serves the semi conductor sector. Late last year, they did a merger of equals with Nanometrics and since then, the combined company has grown cash flow and currently has a significant cash balance (20% of overall market capitalization). They also bought back almost 4% of the company during the March and April timeframe. We believe this strong operating performance combined with net cash, buybacks and attractive valuation, creates an attractive investment opportunity.”
In Q1 2020, the number of bullish hedge fund positions on Onto Innovation Inc. (NYSE:ONTO) stock decreased by about 21% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Onto Innovation’s growth potential. Our calculations showed that Onto Innovation Inc. (NYSE:ONTO) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so we are checking out this under-the-radar lithium stock. 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. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.
