In this article, we’re going to discuss the five highest growth companies hedge funds are buying. To see a more stocks and have a better understanding of what are high growth stocks, please see Top 10 High Growth Companies Hedge Funds Are Buying.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, advertising technology one of the fastest growing industries right now, so we are checking out stock pitches like this under-the-radar adtech stock that can deliver 10x gains. We go through lists like the 10 best hydrogen fuel cell stocks 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 homepage. Keeping this in mind we’re going to take a gander at the top 5 high growth companies hedge funds are buying now:
5. Tesla Inc (NASDAQ:TSLA)
On the fifth spot is Tesla Inc (NASDAQ:TSLA), which has had a spectacular run and is on path for more growth. The company has recently announced an expansion to its Chinese factory in order to boost production capacity. The Gigafactory Shanghai was a major catalyst for the stock as it allowed the company to expand its production significantly and provided exposure to the largest market in the world. In its latest quarterly results, Tesla said its Shanghai factory can provide 250,000 Model 3 vehicles per year and Model Y production, which commenced at the end of 2020 is also ramping up to full capacity. In 2020, Tesla Inc (NASDAQ:TSLA)’s sales in China doubled to $6.6 billion and the country currently represents the company’s second-largest market after the US.
The number of funds tracked by Insider Monkey bullish on Tesla Inc (NASDAQ:TSLA) inched up by one to 68 in the last three months of 2020, while the total value of their positions appreciated to $12.31 billion from $8.18 billion during the same period. Here is what Baron Opportunity Fund said about Tesla in its 2020 Q4 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, and energy storage solutions. The stock increased on strong financial results, including profitability that exceeded market forecasts and strong growth across different geographies and vehicle programs. Indeed, in the third quarter, Tesla delivered almost 140,000 total vehicles – with strong unit level economics of 27.7% GAAP automotive gross profit margins – and another quarter of GAAP profitability and strong free cash flow (almost $1.4 billion). Recently, Tesla announced a record of over 180,000 total vehicle deliveries for the fourth quarter, effectively hitting its goal of 500,000 deliveries for the calendar year, a projection given before the COVID pandemic. In addition, we believe newly released full selfdriving functionality should yield further improvements in unit economics and open exciting new growth opportunities. Lastly, Tesla joined the S&P 500 Index, a meaningful milestone that significantly expands the potential shareholder base.”
