Polen Capital, an investment management firm, published its “Polen U.S. SMID Company Growth Composite” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.35% was delivered by the fund for the first quarter of 2021, trailing its Russell 2500 Growth benchmark that delivered a 2.49% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Polen Capital, in its Q1 2021 investor letter, mentioned Generac Holdings Inc. (NYSE: GNRC), and shared their insights on the company. Generac Holdings Inc. is a Waukesha, Wisconsin-based backup power generation products manufacturer that currently has a $19.6 billion market capitalization. Since the beginning of the year, GNRC delivered a 37.59% return, extending its 12-month gains to 165.17%. As of May 25, 2021, the stock closed at $312.90 per share.
Here is what Polen Capital has to say about Generac Holdings Inc. in its Q1 2021 investor letter:
“Generac Holdings, which is a global provider of power generation equipment and solutions, was a top contributor during the quarter. Generac has a leading brand, dominant distribution network, and superior technology and solutions, according to our research.
Generac has dominant market share (~80%) in the home standby generator category, which remains underpenetrated at ~5% of U.S. households, despite record levels of demand over the past year. Demand for Generac’s products has been primarily driven by a rise in the frequency and severity of power outages in the U.S., growing demand for clean alternative energy sources, and increasing dependence on energy security from both residential and commercial customers.”
Our calculations show that Generac Holdings Inc. (NYSE: GNRC) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Generac Holdings Inc. was in 36 hedge fund portfolios, compared to 32 funds in the fourth quarter of 2020. GNRC delivered a -6.05% 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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