Blue Hawk Investment Group, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 7.48% was recorded by the fund for the Q4 of 2020, below its S&P 500 benchmark that delivered an 11.69% return.
Blue Hawk Investment Group said in its Q4 letter that Splunk Inc. (NASDAQ: SPLK) was the top detractor of their long book portfolio but they continue to maintain their position in the company. Splunk Inc. is a global computer software manufacturing company that currently has a $27.4 billion market cap. For the past 3 months, SPLK delivered a -9.75% return and settled at $169.56 per share at the closing of February 8th.
Here is what Blue Hawk Investment Group has to say about Splunk Inc. in their Q4 2020 investor letter:
“One name of note we wanted to highlight is Splunk, the worst performing long in the quarter. A disappointing Q3’20 and high investor expectations led to a precipitous 23% drop in one trading session following the report. We believe the stock is offering a rare opportunity, as uncertainty caused by the company’s business model transition from license to cloud, among other transitory factors, has spooked investors. This is a very high-quality company with mission-critical software, an attractive competitive position with distribution that will be very challenging to dislodge, and the opportunity to move into tangential opportunities via acquisition. In addition, we think the stock is an under-the-radar recovery play with a very undemanding valuation, rare in the software space. Splunk remains a top five position at year-end.”
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Last month, we published a 10 Best Software Stocks To Buy Now article that includes Splunk Inc. (NASDAQ: SPLK). In our recent data, the company was in 44 hedge fund portfolios. Its all time high statistics is 49. SPLK delivered a 0.87% return in the past 12 months.
Our calculations show that Splunk Inc. (NASDAQ: SPLK) does not belong in our list of 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.
