Alger, an investment management firm, published its ‘Alger Spectra Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. In the letter, the fund highlighted their largest portfolio sector weightings, which is in Information Technology and Consumer Discretionary sector, with their comments on notable companies. The Communication Services sector together with the Industrial sector is where they achieved the largest chunk of their returns. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alger Spectra Fund, in their Q4 2020 investor letter, mentioned Alphabet Inc. (NASDAQ: GOOG) and emphasized their views on the company. Alphabet Inc. is a California-based multinational conglomerate firm and the mother company of Google. It currently has a $1.38 trillion market capitalization. Since the beginning of the year, GOOG delivered a 17.07% return, impressively extending its 12-month gains to 90.16%. As of March 12, 2021, the stock closed at $2,061.92 per share.
Here is what Alger Spectra Fund has to say about Alphabet Inc. in their Q4 2020 investor letter:
“Alphabet is the leading search provider and is a beneficiary of the shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing artificial intelligence and autonomous vehicles, and it owns the highly popular YouTube property. Despite regulatory scrutiny by the U.S. Department of Justice (DOJ) and state attorneys, Alphabet’s strong quarterly report drove its share price higher. Results of the company’s search service andYouTube strongly exceeded expectations driven by increasing advertising that resulted from a strengthening economy. The revenue acceleration occurred across geographies and in Alphabet’s cloud computing service as well. Earnings exhibited strong operating leverage as costs moved only slightly higher.
Finally, the share price of Alphabet responded favorably to an anti-trust lawsuit filed by the DOJ against the company because
the litigation was more limited in scope than anticipated, primarily alleging that the company has improperly established agreements with various phone makers, including Apple, to ensure that Google isthe default search engine across devices.”
Our calculations show that Alphabet Inc. (NASDAQ: GOOG) ranks 6th in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Alphabet Inc. was in 157 hedge fund portfolios, compared to 150 funds in the third quarter. GOOG delivered a 17.15% return in the past 3 months.
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.
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Disclosure: None. This article is originally published at Insider Monkey.