Carillon Tower: “Peloton (PTON) is Positioned as a Beneficiary of the At-Home Connected Fitness”

Carillon Tower Advisers, an investment management firm, published its “Carillon Eagle Mid Cap Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. Mid-cap stocks as a whole advanced in the first quarter of 2021. However, there was a rather considerable disparity among the two style indexes, as the Russell Midcap® Growth Index (down 0.57%) significantly lagged
its Russell Midcap® Value Index (13.45%) counterpart. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Carillon Tower Advisers, in their Q1 2021 investor letter, mentioned Peloton Interactive, Inc. (NASDAQ: PTON), and shared their insights on the company. Peloton Interactive, Inc. is a New York, New York-based exercise equipment company that currently has a $28.4 billion market capitalization. Since the beginning of the year, PTON delivered a -36.26% return, extending its 12-month gains to 154.27%. As of May 04, 2021, the stock closed at $96.70 per share.

Here is what Carillon Tower Advisers has to say about Peloton Interactive, Inc. in their Q1 2021 investor letter:

“Peloton Interactive operates a connected fitness platform offering live and on-demand classes allowing users to exercise at home. The stock gave back a portion of its 2020 gains in the quarter, as manufacturing and supply issues have resulted in longer wait times for customers. Additionally, the ongoing successful vaccine rollout has perhaps led some investors to reevaluate the future growth prospects for a company that undoubtedly benefited from the stay-at-home environment. We remain optimistic and feel Peloton is positioned as a clear beneficiary of the secular trend towards at-home connected fitness. The firm has recently begun to shore up its recent supply hiccups and is poised to continue to expand its total addressable market through innovative product offerings at more affordable price points, as well as to expand its subscription-based content.”

Our calculations show that Peloton Interactive, Inc. (NASDAQ: PTON) 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, Peloton Interactive, Inc. was in 63 hedge fund portfolios, compared to 58 funds in the third quarter. PTON delivered a -34.29% 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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