5 Stocks That Helped Amish Mehta’s SQN Investors Return 46%

3. Zoom Video Communications ( NASDAQ: ZM)

The pandemic darling Zoom Video Communications ( NASDAQ: ZM) is among the stocks that helped Amish Mehta’s SQN Investors to generate robust gains in 2020. The video calling company is the third-largest stock holding of SQN Investors. The hedge fund initiated a position in Zoom during the second quarter and reduced its stake by 22% in the third quarter.

Shares of Zoom Video rallied 400% in fiscal 2020. Other hedge funds are also seeing growth prospects for Zoom. Alger Mid Cap Focus Fund recently presented a bullish outlook for Zoom in an investor’s letter. Here is what Alger Mid Cap Focus Fund stated:

“Zoom Video Communications provides a cloud-native, video-first communications platform that transforms how people communicate, interact and work together. It offers a better experience with easy onboarding and use, and it addresses enterprise needs around scalability, cost and minimal IT involvement. The company is a leader and household name in video communication and is benefiting from the explosive growth of remote working and learning from home resulting from Covid¬19 social distancing. Shares of Zoom outperformed after the company said its fiscal second quarter exceeded consensus expectations and raised its fiscal-year 2021 guidance for revenues and profitability. We believe Zoom is currently well positioned to benefit from the ongoing high levels of remote working and learning at home. Additionally, it is continuing to capture market share and its launch of Zoom Phone and Zoom Rooms has expanded its market. The company is also increasing its penetration within enterprises and is expanding internationally.”