Cooper Investors, an employee-owned investment company that manages 7 pooled investment trusts, published its Cooper Investors Global Equities Fund (Hedged) third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A positive return of 9.18% was recorded by the fund for the 3rd Quarter of 2020, ahead of its MSCI All Countries World benchmark that returned 6.94%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Cooper Investors in their Q3 2020 Investor Letter said that they were able to distinguish a value in Paycom Software, Inc. (NYSE: PAYC) and initiated a position in the company. Paycom Software, Inc. is an online payroll and human resource technology provider that currently has a $23.285 billion market cap. For the past 3 months, PAYC delivered a 6.01% return and settled at $405.04 per share at the closing of January 15th.
Here is what Cooper Investors has to say about Paycom Software, Inc. in their Investor Letter:
“In the midst of the technology pull back in September the Fund bought a position in Paycom, a leading Software-as-a-Service [‘SAAS’] provider of payroll and human capital management [‘HCM’] solutions in the US. Founded by CEO Chad Richison in 1998 and based in Oklahoma City, Paycom has built one of the highest quality SAAS businesses we’ve come across, growing its revenues at a rate of 30% with 40% EBITDA margins.
Paycom has a differentiated product with a fully integrated all-in-one HCM and payroll offering. In a Cloud and remote-working world the ability to access all needs such as payroll, recruitment and learning
management through a single application and database is a huge advantage versus the incumbent solution which often involves the complexity of multiple vendors.
Paycom has faced headwinds in 2020 notably the decrease in employment which impacts revenues as the business charges based on employee headcount. When the Fund purchased shares Paycom stock had been flat for 2020 despite the strong performance of technology stocks, a brief opportunity when considering Paycom still looks likely to grow its revenues double digits in 2020. We think Paycom can get back to its formerly very strong growth rates given a unique offering and US$800mn revenue base in a US$30bn+ addressable market that is growing mid-to-high single digits.”
Last December 2020, we published an article telling that Paycom Software, Inc. (NYSE: PAYC) was in 38 hedge funds’ portfolio, its all time high statistics. Paycom Software, Inc. proved its worth by delivering a 37.05% return for the past 12 months.
Our calculations showed that Paycom Software, Inc. (NYSE: PAYC) does not belong to 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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