Is Bottomline Technologies (EPAY) a Smart Long-term Buy?

Bernzott Capital Advisors recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 8.61% (net) for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 2.56% in the same quarter. You should check out Bernzott Capital Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Bernzott Capital Advisors highlighted a few stocks and Bottomline Technologies Inc (NASDAQ:EPAY) is one of them. Bottomline Technologies Inc (NASDAQ:EPAY) is a software company. Year-to-date, Bottomline Technologies Inc (NASDAQ:EPAY) stock lost 8.1% and on December 11th it had a closing price of $49.27. Here is what Bernzott Capital Advisors said:

“Bottomline Technologies (EPAY): Posted fiscal Q4 results that were better than guidance/consensus. The quarter was highlighted by record subscription bookings, which drove record bookings for the year. Subscription revenue (78% of total) was +12% on a constant currency basis. Transaction volume declines on Paymode-X and legal spend management negatively impacted what was otherwise solid growth. Looking beyond near-term COVID headwinds, when transaction volumes normalize, subscription growth should return to the 15% to 20% range, if not higher.”


In Q2 2020, the number of bullish hedge fund positions on Bottomline Technologies Inc (NASDAQ:EPAY) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Bottomline Technologies Inc (NASDAQ:EPAY) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.