Forager Funds: ‘APi Group (APG) Provides a Defensive Growth Opportunity’

Forager Funds Management, a boutique fund manager firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 38.26% was recorded by the fund for the calendar year of 2020, above its MSCI AC World Net benchmark that returned 5.90%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Forager Funds Management, in their Q4 2020 Investor Letter said that they continue to see APi Group Corporation (NYSE: APG), with an attractive valuation that made them come up with a positive long-term view for the company. APi Group Corporation is a premier business provider of safety and industrial services that currently has a $3.3 billion market cap. For the past 3 months, APG delivered a decent 25.10% return and settled at $18.64 per share at the closing of January 25th.

Here is what Forager Funds Management has to say about APi Group Corporation in their Investor Letter:

“Companies such as APi Group Corporation (NYSE: APG) continue to trade at attractive valuations despite being exposed to growing end-markets — in this case fire safety and security. APi should also benefit from the Democrats recently winning control of the U.S. Senate, particularly given renewed hopes for a rural broadband stimulus and an increased focus on energy efficient buildings.

With more than half of the company’s revenues of a recurring nature, APi Group provides a defensive growth opportunity in a
market that has significant pockets of lofty valuations.”

Air Products and Chemicals APD

SpaceKris /

APG delivered a 55.85% return in the past 12 months. However, our calculations showed that APi Group Corporation (NYSE: APG) 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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Disclosure: None. This article is originally published at Insider Monkey.