Roubaix Capital LLC, an investment management firm, published its ‘Roubaix Fund Composite’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 26.63% was recorded by the fund for the Q4 of 2020, outperforming its HFRI Equity Hedge benchmark that delivered a 14.50% return but below its Russell 2000 index that had a 31.37% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Roubaix Capital, in their Q4 2020 Investor Letter, said that Stoneridge, Inc. (NYSE: SRI) should also benefit from the post pandemic rise of the economy. Stoneridge, Inc. is an engineered electrical and electronic products designer and manufacturer that currently has a $803.6 million market cap. For the past 3 months, SRI delivered a 9.53% return and settled at $29.76 per share at the closing of February 16th.
Here is what Roubaix Capital has to say about Stoneridge, Inc. in their Q4 2020 investor letter:
“Stoneridge (SRI) should also benefit from the strengthening economic outlook and the application of technology to improve efficiency. On the first point, SRI supplies components and systems into the commercial vehicle and automotive markets. Both markets are poised to improve in 2021 after varying degrees of headwinds in 2020. On the technology side, SRI’s MirrorEye product has promising applications for commercial truck owners. The product directly improves driver visibility which should reduce accidents, and thereby insurance premiums from costly insurance claims. Further, since the product replaces physical side mirrors it improves aerodynamics. This cuts fuel costs and creates another source of saving and productivity for vehicle operators. The pandemic delayed adoption in 2020, but 2021 is poised to be a breakout year for this company.”
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Last December, we published an article telling that Stoneridge, Inc. (NYSE: SRI) was in 10 hedge fund portfolios. Its all time high statistics is 24. SRI delivered a -0.23% return in the past 12 months.
Our calculations show that Stoneridge, Inc. (NYSE: SRI) 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.
