Baron Partners Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Partners Fund returned 42.87% (institutional shares). In comparison, the benchmark S&P 500 Index was up 12.15%, while the Russell Midcap Growth Index was up 19.02%. You should check out Baron Partners 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, the fund highlighted a few stocks and Schwab Charles Corp (NYSE:SCHW) is one of them. Schwab Charles Corp (NYSE:SCHW) is a financial services company. In the last three months, Schwab Charles Corp (NYSE:SCHW) stock gained 27.6% and on March 18th it had a closing price of $66.07. Here is what the fund said:
“Shares of brokerage firm The Charles Schwab Corp. rose in the quarter. The company has been integrating its recent acquisition of TD Ameritrade. The combined company should result in improved services as it cross-sells products to clients of Schwab and TD Ameritrade as well as expense synergies that should lower the cost of operation per custodial asset to industry-leading levels. Finally, Schwab has maintained an impressive mid-single-digit organic growth rate. Once interest rates eventually rise, Schwab’s profitability should improve significantly.”
Last month, we published an article revealing that Schwab Charles Corp (NYSE:SCHW) was one of the 10 best bank stocks to buy now.
In Q3 2020, the number of bullish hedge fund positions on Schwab Charles Corp (NYSE:SCHW) stock decreased by about 25% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in SCHW’s growth potential. Our calculations showed that Schwab Charles Corp (NYSE:SCHW) 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.
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 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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.
