Baron Discovery Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Discovery Fund returned 6.07% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 2000 Growth Index was up 3.92%. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Alkami Technology Inc. (NASDAQ:ALKT) is one of them. Alkami Technology Inc. (NASDAQ:ALKT) is a software company. In the last three months, Alkami Technology Inc. (NASDAQ:ALKT) stock lost 8%. Here is what the fund said:
“This quarter, we invested in Alkami Technology Inc., a cloud-based digital banking platform that enables financial institutions (primarily credit unions) to onboard and engage new users, accelerate revenues, and meaningfully improve operational efficiency. The market opportunity is large with Alkami focusing on the top 2,000 of the 10,000 total financial institutions in the U.S. (excluding the mega-banks). Many financial institutions use clunky, outdated legacy systems today that are not well suited to the shift to digital banking (which has been accelerated by COVID). As a result, we are seeing financial institutions significantly increase their IT investments in these products. We believe Alkami will be a prime beneficiary of this shift as it stands out due to its highly rated user experience, leading brand with credit unions, and platform flexibility (multi-tenant, single code base platform). Alkami is well positioned to grow revenue 25% or more for the next several years driven by a combination of expanding existing customer relationships, adding new clients (heightened focus on banks in addition to credit unions), new product development, and selective acquisitions. We also believe that the company’s 30% or greater long-term adjusted EBITDA margin target is achievable.”
Photo by Danial Igdery on Unsplash
Our calculations showed that Alkami Technology Inc. (NASDAQ:ALKT) isn’t ranked among the 30 most popular stocks among hedge funds.
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.