Wasatch Core Growth Fund recently released its Q2 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 8.6% for the quarter, outperforming its benchmark, the Russell 2000 Index which returned 4.3% in the same quarter. You should check out Wasatch’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 Allegiant Travel Co (NASDAQ:ALGT) is one of them. Allegiant Travel Co (NASDAQ:ALGT) operates as a leisure travel company. In the last three months, Allegiant Travel Co (NASDAQ:ALGT) stock lost 5%. Here is what the fund said:
“The greatest detractor from Fund performance for the second quarter was Allegiant Travel Co. (ALGT), which offers airline flights, hotel bookings, car rentals, travel management and other related services. When the stock price declined in 2020, we performed more research on the company. Although other travel-related competitors were facing dire circumstances, Allegiant wasn’t forced to raise dilutive equity or take government money. Since then, Allegiant has strengthened its relationships with pilots and crews and has positioned itself to benefit from leisure travel—which should accelerate sooner than business travel. Although we didn’t purchase the company as a way to take advantage of the economic reopening, the stock did get a boost from economy-related optimism in the first quarter. During the second quarter, the stock simply gave back some of its gains but we still like the company’s fundamentals from a risk/reward perspective.”
Alexey Y. Petrov/Shutterstock.com
In August, we published an article revealing that Allegiant Travel Co (NASDAQ:ALGT) was one of the 5 best stocks to invest in according to Philip Timon’s Owls Nest Partners.
In Q1 2021, the number of bullish hedge fund positions on Allegiant Travel Co (NASDAQ:ALGT) stock increased by about 16% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in ALGT’s growth potential. Our calculations showed that Allegiant Travel Co (NASDAQ:ALGT) 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.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.
Disclosure: None. This article is originally published at Insider Monkey.
