Baron Growth Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Growth Fund returned 21.1% (institutional shares). In comparison, the benchmark S&P 500 Index was up 12.15%, while the Russell 2000 Growth Index was up 29.61%. You should check out Baron Growth 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 Iridium Communications Inc. (NASDAQ:IRDM) is one of them. Iridium Communications Inc. (NASDAQ:IRDM) is the world’s only truly global satellite communications company. In the last three months, Iridium Communications Inc. (NASDAQ:IRDM) stock gained 14% and on March 15th it had a closing price of $42.06. Here is what the fund said:
“Iridium Communications Inc., a leading satellite communications provider, rose after results demonstrated resiliency despite exposure to pandemicimpacted verticals. Iridium is uniquely able to offer commercial customers true global voice and data coverage. Iridium’s Certus products have a growing pipeline with Maritime and Department of Defense customers, which should add to growth as installations accelerate. The company also saw strong growth in consumer-facing channels, which are benefiting from attractive secular trends.”
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In Q3 2020, the number of bullish hedge fund positions on Iridium Communications Inc. (NASDAQ:IRDM) stock decreased by about 21% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in IRDM’s growth potential. Our calculations showed that Iridium Communications Inc. (NASDAQ:IRDM) 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.
