Here’s Why Roku Inc. (ROKU) Landed in Artisan Mid Cap’s Top Contributor List

Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 16.82% was recorded by its Investor Class: ARTMX, 16.87% by its Advisor Class: APDMX, and 16.89% by its Institutional Class: APHMX, in the fourth quarter of 2020, all below its Russell Midcap Growth Benchmark that delivered a 19.02% return and its Russel Midcap Index that was up by 19.91% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Mid Cap Fund, in their Q4 2020 investor letter, mentioned Roku, Inc. (NASDAQ: ROKU) and emphasized their views on the company. Roku, Inc. is a California-based digital streaming company that currently has a $45.3 billion market capitalization. Since the beginning of the year, ROKU delivered a 7.49% return, massively extending its 12-month gains to 428.70%. As of March 16, 2021, the stock closed at $353.58 per share.

Here is what Artisan Mid Cap Fund has to say about Roku, Inc. in their Q4 2020 investor letter:

“Among our top individual contributors in Q4 was Roku. Roku is one of the pioneers of streaming TV, connecting users to à la carte content via an easy-to-use streaming ecosystem. The pandemic has accelerated the trend away from traditional linear TV and toward an array of streaming services like those offered on Roku’s platform. This shifting landscape has also rearranged where advertising dollars are being spent, and as a leading provider of the operating system used in domestic smart TVs, with proprietary data on users’ viewing habits, Roku can also participate in advertising economics. New initiatives such as The Roku Channel—its own ad-supported streaming service—and international expansion via partnerships with smart-TV manufacturers also offer further profit cycle catalysts in the years ahead.”

Most Expensive Televisions In the World

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Our calculations show that Roku, Inc. (NASDAQ: ROKU) 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, Roku, Inc. was in 60 hedge fund portfolios, compared to 59 funds in the third quarter. ROKU delivered a 9.53% 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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Disclosure: None. This article is originally published at Insider Monkey.