Here’s Why Verint Systems (VRNT) Became a Top Detractor in Bernzott Capital’s Portfolio

Bernzott Capital Advisors, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 10.27% was recorded by the fund for the Q1 of 2021, below the Russell 2000 Value and Russell 2500 Value Index that delivered a 21.17% and 16.83% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Bernzott Capital Advisors, in their Q1 2021 investor letter, mentioned Verint Systems Inc. (NASDAQ: VRNT), and shared their insights on the company. Verint Systems Inc. is a New York-based software company that currently has a $3.09 billion market capitalization. Since the beginning of the year, VRNT delivered a 37.57% return, extending its 12-month gains to 103.39%. As of May 05, 2021, the stock closed at $47.07 per share.

Here is what Bernzott Capital Advisors has to say about Verint Systems Inc. in their Q1 2021 investor letter:

“Verint Systems (VRNT): This customer experience software provider completed its planned spin-off of its Cognyte Software unit on February 1. The poor contribution to return for the quarter does not reflect value from the separated unit and is therefore a bit of a statistical artifact. At the end of the quarter, the company reported good results and reaffirmed targets outlined in its January 2021 analyst day as the company continues to manage its transition to a subscription software model.”


Our calculations show that Verint Systems Inc. (NASDAQ: VRNT) 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, Verint Systems Inc. was in 20 hedge fund portfolios, compared to 27 funds in the third quarter. VRNT delivered a -6.83% 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.