Baron Funds, an asset management firm, published its “Baron Small Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.67% was delivered by the fund’s institutional shares for the Q1 of 2021, trailing the S&P 500 Index, which appreciated 6.17%, and modestly underperforming the Russell 2000 Growth Index which rose 4.88% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron Small Cap Fund, in its Q1 2021 investor letter, mentioned Array Technologies, Inc. (NASDAQ: ARRY), and shared their insights on the company. Array Technologies, Inc. is a Albuquerque, New Mexico-based solar tracking solutions manufacturer that currently has a $1.8 billion market capitalization. Since the beginning of the year, ARRY delivered a -67.01% return, while its 3-month gains are down by -67.91%. As of May 14, 2021, the stock closed at $14.23 per share.
Here is what Baron Small Cap Fund has to say about Array Technologies, Inc. in its Q1 2021 investor letter:
“Array Technologies, Inc. is the leading supplier to the utility scale solar energy industry, selling ground-mounted systems that provide tracker solutions that add great efficiency to the solar panel arrays. We purchased shares in Array last quarter, and the stock was one of our strongest performers (please check out our last quarterly letter). This quarter, the stock reversed course after its private equity owner submitted a filing for a large secondary offering. The company also guided to lower near-term margins caused by increased investments in growth. The stock traded back to what we believed was an attractive price, and we added to our holdings.”
Our calculations show that Array Technologies, Inc. (NASDAQ: ARRY) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Array Technologies, Inc. was in 29 hedge fund portfolios. ARRY delivered a -48.67% return in the past month.
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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