Is BlackLine (BL) A Good Investment Choice?

Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.99% was delivered by the fund for the first quarter of 2021, trailing its Russell 2000 Growth benchmark that delivered a 4.87% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Polen U.S. Small Company Growth Fund, in its Q1 2021 investor letter, mentioned BlackLine, Inc. (NASDAQ: BL), and shared their insights on the company. BlackLine, Inc. is a California, United States-based software company that currently has a $6.03 billion market capitalization. Since the beginning of the year, ALRM delivered a -22.09% return, while its 12-month gains are up by 49.51%. As of May 24, 2021, the stock closed at $103.91 per share.

Here is what Polen U.S. Small Company Growth Fund has to say about BlackLine, Inc. in its Q1 2021 investor letter:

Blackline provides software that helps companies more accurately meet financial deadlines by automating accounting and reporting processes. Demand for their products trended upward, steadily and sustainably, during the latter half of 2020 as potential customers put more focus and investment dollars behind digital transformation. The company is seeing an increasing trend of large deals (new and expansion), progress in up-sells and crosssells with existing customers, and a large pipeline of transformational deals for 2021. We believe that the company’s willingness and ability to invest in new talent, product innovation, and automation have made its product offerings more attractive and well-positioned to take advantage of a global economic recovery.”


Our calculations show that BlackLine, Inc. (NASDAQ: BL) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, BlackLine, Inc. was in 24 hedge fund portfolios, compared to 23 funds in the fourth quarter of 2020. BL delivered a -15.96% 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.