Arista (ANET) Networks is One of Giverny Capital’s Best Non-Financial Holdings

Giverny Capital Asset Management LLC, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 15.39% was recorded by the fund for the Q4 of 2020, above its S&P 500 benchmark that returned 12.15%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Giverny Capital, in their Q4 2020 Investor Letter said that Arista Networks, Inc. (NYSE: ANET) is among their best performing non-financial holdings. Arista Networks, Inc. is a premier  world-class platform in cognitive cloud networking for data center and campus environments that currently has a $23.2 billion market cap. For the past 3 months, ANET delivered a decent 50.21% return and settled at $307 per share at the closing of January 26th.

Here is what Giverny Capital Asset Management has to say about Arista Networks, Inc. in their Investor Letter:

“Among our best non-financial holdings, Arista Networks rose 40%. Arista makes crucial networking equipment for cloud computing hubs and large corporate data centers. During much of the past year, skeptics have asserted that cloud giants like Microsoft and Facebook would reduce their orders with Arista in favor of so-called white boxes, or unbranded routers and switches that cost less. This has not come to pass. Arista packages networking equipment with operating software that makes it easier for customers to operate and scale their networks, and to diagnose and repair problems. As there is no end in sight to the growth of hyperscale data centers, managing the performance of these sprawling networks is vital. Arista offers a superior solution to a fast-growing customer segment.”


Last September 2020, we published an article telling that Arista Networks, Inc. (NYSE: ANET) was in 33 hedge fund portfolios, its all time high statistics. ANET delivered a 30.61% return in the past 12 months.

Our calculations show that Arista Networks, Inc. (NYSE: ANET) 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.