Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 15.42% was recorded by the fund’s investor class for the Q1 of 2021, trailing the benchmark, Russell 2000® Value Index, that rose to 21.17% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Wasatch Small Cap Value Fund, in its Q1 2021 investor letter, mentioned Ebix, Inc. (NASDAQ: EBIX), and shared their insights on the company. Ebix, Inc. is an Atlanta, Georgia-based software company that currently has an $868.2 million market capitalization. Since the beginning of the year, EBIX delivered a -26.10% return, while its 12-month gains are up by 57.51%. As of May 11, 2021, the stock closed at $28.06 per share.
Here is what Wasatch Small Cap Value Fund has to say about Ebix, Inc. in its Q1 2021 investor letter:
“The Fund’s leading detractors were largely information-technology companies, which wasn’t particularly surprising given the broader rotation out of tech and into other segments of the value space. Shares of Ebix, Inc. (EBIX) declined after the company’s auditor resigned due to control issues surrounding a new line of gift cards. We don’t think the misstep was intentional, but rather a case of management erring by not focusing more closely on the audit process. We’ve known Ebix for more than 10 years, and we believe the investigation will lead to improved oversight in the future. Still, we are monitoring the situation closely.”
Our calculations show that Ebix, Inc. (NASDAQ: EBIX) 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, Ebix, Inc. was in 14 hedge fund portfolios, compared to 13 funds in the third quarter. EBIX delivered a -47.84% 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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