Greystone Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +45.7% was delivered by the fund’s median account for the Q1 of 2021, ahead of its S&P 500 and Russell 2000 benchmarks that delivered a 6.2% and 12.7% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Greystone Capital Management, in their Q1 2021 investor letter, mentioned SharpSpring, Inc. (NASDAQ: SHSP) and Hill International, Inc. (NYSE: HIL). SharpSpring, Inc. is a Gainesville, Florida-based software company that currently has a $200.7 million market capitalization, while Hill International, Inc. is a Philadelphia, Pennsylvania-based management consulting company that currently has a $153 million market capitalization. Since the beginning of the year, SHSP delivered a 0.80% return, impressively extending its 12-month gains to 135.78%. On the other hand, HIL delivered a 41.67% year-to-date return, while its 12 month gains are up by 32.68%. As of April 26, 2021, SHSP closed at $16.41, and HIL ended the day at $2.72 per share.
Here is what Greystone Capital Management has to say about SharpSpring, Inc. and Hill International, Inc. in their Q1 2021 investor letter:
“I made the decision to trim and/or exit client positions in Sharpspring Technologies and further reduce certain client positions in Hill International (HIL) following a 100%+ return in our Sharpspring position and further price increases in shares of Hill International. The decision was made in order to funnel some capital into current and new positions that based on my estimates have higher upside and better risk/reward profiles. For our continued ownership in HIL, I’m expecting a very positive 2021 where we may see the business return to top line growth and increased free cash flow generation as we continue to move past the effects of COVID-19. As for Sharpspring, I remain a fan of the business and believe upside still exists as the company continues to tackle their marketing software niche and focus on driving new customer growth. For Sharpspring, recent capital raises, additions to the Board and increased revenue growth during 2020 all point to positive operational signs. However, it is not as clear to me at these price levels whether we will be able to meet our 15-25% per year return criteria moving forward. I will continue to follow the business and look forward to any opportunities to purchase shares at lower prices.”
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Our calculations show that SharpSpring, Inc. (NASDAQ: SHSP) and Hill International, Inc. (NYSE: HIL) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, SharpSpring, Inc. was in 12 hedge fund portfolios, compared to 7 funds in the third quarter. Meanwhile, Hill International, Inc. was in 9 hedge fund portfolios, versus the 10 funds in the third quarter. SHSP and HIL delivered a -24.31% and 19.30% returns respectively in the past 3 months.
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.
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Disclosure: None. This article is originally published at Insider Monkey.
