Baron Discovery Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Discovery Fund returned 18.83% (institutional shares). This was 11.67% better 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 Q3 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and Montrose Environmental Group Inc. (NYSE:MEG) is one of them. Montrose Environmental Group Inc. (NYSE:MEG) operates as an environmental company. In the last three months, Montrose Environmental Group Inc. (NYSE:MEG) stock lost 11.9% and on December 2nd it had a closing price of $27.68. Here is what Baron Discovery Fund said:
“We initiated a position in Montrose Environmental Group, Inc. during the quarter upon the company’s IPO. Montrose is a high-growth environmental solutions company that supports government and commercial organizations. The company’s diverse set of services are centered around air, soil, and water. The company specializes in identifying environmental needs, measuring and quantifying compounds to ensure regulatory compliance, and then helping clients fix the problem through engineering and remediation. We are very positive around the attributes of the environmental services industry due to its high recurring revenue, resilience across political and economic cycles, and strong secular backdrop driven by climate change, aging infrastructure, and heightened public awareness around environmental issues. We expect Montrose to continue to grow revenue organically in the high single-digit range, and we believe the growth rate will be even faster than that as Montrose continues to consolidate the highly fragmented environmental services industry and gain market share through cross-selling opportunities. With only $234 million in revenue in 2019, there is substantial room for Montrose to execute on its strategy to become the leading company in the $1.3 trillion global environmental services industry.”
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Our calculations showed that Montrose Environmental Group Inc. (NYSE:MEG) 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
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Disclosure: None. This article is originally published at Insider Monkey.
