Alger, an investment management firm, published its “Alger Weatherbie Specialized Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. During the quarter, the largest portfolio sector weightings were Information Technology and Health Care. The largest sector overweight was Financials. Class A shares of the Alger Weatherbie Specialized Growth Fund underperformed the Russell 2500 Growth Index during the first quarter of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alger Weatherbie Specialized Growth Fund, in their Q1 2021 investor letter, mentioned Upstart Holdings, Inc. (NASDAQ: UPST) and shared their insights on the company. Upstart Holdings, Inc. is a San Carlos, California-based consumer lending company that currently has a $7.4 billion market capitalization. Since the beginning of the year, UPST delivered a 139.39% return, while its 3-month gains are up by 79.72%. As of April 19, 2021, the stock closed at $97.55 per share.
Here is what Alger Weatherbie Specialized Growth Fund has to say about Upstart Holdings, Inc. in their Q1 2021 investor letter:
“Upstart Holdings, Inc. was among the top contributors to performance during the first quarter of 2021. Upstart operates a cloud-based artificial intelligence (Al) lending platform. The platform aggregates consumer demand for loans and connects it to the company’s network of Al-enabled bank partners. The technology connects consumers, banks and institutional investors through a shared Al lending platform. Upstart was incorporated in 2012 and is headquartered in San Mateo, California. The stock price increased after the company’s December IPO due to anticipation that the company will see increasing demand for its services, a result of needing to seek lenders after having accumulated large amounts of deposits, in part from Americans receiving stimulus checks.”
fizkes/Shutterstock.com
Our calculations show that Upstart Holdings, Inc. (NASDAQ: UPST) 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, Upstart Holdings, Inc. was in 15 hedge fund portfolios. UPST delivered a -17.67% return in the past month.
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.
