Baron Opportunity Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Opportunity Fund returned 10.14% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 3000 Growth Index was up 11.38%. You should check out Baron’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 Alphabet Inc. (NASDAQ:GOOG) is one of them. Alphabet Inc. (NASDAQ:GOOG) is a technology company. In the last three months, Alphabet Inc. (NASDAQ:GOOG) stock gained 18%. Here is what the fund said:
“Alphabet Inc. is the parent company of Google, the world’s largest search and online advertising company and a top cloud computing player. Shares of Alphabet were up in the quarter given continued recovery in ad spending, strong cloud revenue growth, and improved cost controls. Alphabet’s total revenue grew 32%, beating the Street’s estimate of 25%, with search revenues up 30%, YouTube revenue up 49%, and total cloud revenue up 46% (with Google Cloud Platform growing much faster). Moreover, Google’s operating margins expanded over 1,000 basis points from 19% to just under 30%. We retain high conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in cloud computing, artificial intelligence (AI), autonomous driving (Waymo), and life sciences.”
Pixabay/Public Domain
Earlier this month, we published an article revealing that Alphabet Inc. (NASDAQ:GOOG) was one of the 5 best tech stocks to buy according to Stanley Druckenmiller.
In Q1 2021, the number of bullish hedge fund positions on Alphabet Inc. (NASDAQ:GOOG) stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in GOOG’s growth potential. Our calculations showed that Alphabet Inc. (NASDAQ:GOOG) is ranked #7 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.
