Is Allegiant Travel Company (ALGT) A Smart Long-Term Buy?

Wasatch Global Investors, an investment management firm, published its “Wasatch Core Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 5.59% was recorded by the fund for the Q1 of 2021, trailing the benchmark, Russell 2000 Index, that increased 12.70% and the Russell 2000 Growth Index that rose 4.88% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Global Investors, in its Q1 2021 investor letter, mentioned Allegiant Travel Company (NASDAQ: ALGT), and shared their insights on the company. Allegiant Travel Company is a Las Vegas, Nevada-based travel and hospitality company that currently has a $3.6 billion market capitalization. Since the beginning of the year, ALGT delivered an 18.76% return, impressively extending its 12-month gains to 204.53%. As of May 07, 2021, the stock closed at $224.74 per share.

Here is what Wasatch Global Investors has to say about Allegiant Travel Company in its Q1 2021 investor letter:

“We recently purchased additional shares of Allegiant Travel Co. (ALGT) not because it’s a play on the economic reopening but because we like the company’s fundamentals and stock price from a risk/reward perspective. Allegiant 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 travelrelated companies 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.”

Our calculations show that Allegiant Travel Company (NASDAQ: ALGT) 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, Allegiant Travel Company was in 19 hedge fund portfolios compared to 24 funds in the third quarter. ALGT delivered a 5.85% 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.