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 HubSpot, Inc. (NYSE: HUBS) and emphasized their views on the company. HubSpot, Inc. is a Massachusetts-based software company that currently has a $20.8 billion market capitalization. Since the beginning of the year, HUBS delivered a 14.04% return, impressively extending its 12-month gains to 331.76%. As of March 16, 2021, the stock closed at $468.90 per share.
Here is what Artisan Mid Cap Fund has to say about HubSpot, Inc. in their Q4 2020 investor letter:
“Among our top individual contributors in Q4 was HubSpot. HubSpot is a developer and provider of cloud-based software used by small and medium-sized businesses in the areas of inbound marketing, sales and customer service. The company has been adding new customers at a significantly faster rate than before the pandemic given stabilizing economic trends, thoughtful decisions made by the company in early 2020 to attract new users (price discounts, new free options) and the realization by businesses of all sizes that digital investments are critical in this environment. With the secular trend toward the digitization of commerce fulfilling shopping needs online firmly in motion, a lightly penetrated addressable market and an expanding product portfolio, we believe the growth runway ahead is meaningful.”
Our calculations show that HubSpot, Inc. (NYSE: HUBS) 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, HubSpot, Inc. was in 52 hedge fund portfolios, compared to 40 funds in the third quarter. HUBS delivered a 19.69% 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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