Bernzott Capital Advisors, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 10.27% was recorded by the fund for the Q1 of 2021, below the Russell 2000 Value and Russell 2500 Value Index that delivered a 21.17% and 16.83% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Bernzott Capital Advisors, in their Q1 2021 investor letter, mentioned ORBCOMM Inc. (NASDAQ: ORBC), and shared their insights on the company. ORBCOMM Inc. is a Rochelle Park, New Jersey-based mobile network provider company that currently has a $910.1 million market capitalization. Since the beginning of the year, ORBC delivered a 54.18% return, extending its 12-month gains to 368.85%. As of May 05, 2021, the stock closed at $11.44 per share.
Here is what Bernzott Capital Advisors has to say about ORBCOMM Inc. in their Q1 2021 investor letter:
“Orbcomm (ORBC): The company is a provider of industrial Internet of Things (“IoT”) solutions, including network connectivity, devices, and applications used to track, monitor, and enhance security for a variety of assets across industries. Specific use cases include tracking trucks and rail cars, optimizing irrigation control systems, and monitoring refrigerated containers to maintain integrity of the cold chain. Approximately 60% of revenues are derived from recurring service fees. Following an active period of M&A, the company has completed a two-year product portfolio rationalization and integration initiative which will foster cost efficiencies. The roll-out of a new dual mode (cellular/satellite) service offering and the general recovery of the transportation sector should contribute to growth. Free cash flow and return on capital will benefit from a fifteen-year agreement to leverage Inmarsat’s satellite network, allowing the company to forego capex for its own constellation. Lastly, de-leveraging is expected to accrue value to shareholders. The time is right for multiple factors to coalesce and make Orbcomm a good investment. Note: as this commentary went to print, Orbcomm received a cash buyout offer from a private equity firm of $11.50, a premium of 50%+.”
Our calculations show that ORBCOMM Inc. (NASDAQ: ORBC) 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, ORBCOMM Inc. was in 16 hedge fund portfolios, compared to 13 funds in the third quarter. ORBC delivered a 36.03% 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.