Alger Spectra Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. Class A shares of the Alger Spectra Fund outperformed the Russell 3000 Growth Index during the third quarter of 2020. You should check out Alger Spectra Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Alger Spectra Fund Fund highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) is one of them. Alibaba Group Holding Limited (NYSE:BABA) is an e-commerce company. Year-to-date, Alibaba Group Holding Limited (NYSE:BABA) stock gained 11.4% and on December 29th it had a closing price of $236.26. Here is what Alger Spectra Fund said:
“Alibaba is the dominant ecommerce platform in the Chinese economy. where ecommerce remains underpenetrated and fast growing. It is also a leading player in China’s cloud computing, big data analytics. digital media and entertainment markets. The performance of shares of Alibaba reflects investor excitement about its ability to exploit the large addressable market opportunities in ecommerce and cloud computing because of state-enacted barriers blocking foreign competitive entry.
Additionally the accelerating pace of consumer spending in China is one.of the world’s greatest growth stories and Alibaba is a prime beneficiary.”
In Q3 2020, the number of bullish hedge fund positions on Alibaba Group Holding Limited (NYSE:BABA) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Alibaba’s growth potential. Our calculations showed that Alibaba Group Holding Limited (NYSE:BABA) is ranked #4 among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.