Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Global Discovery Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 16.95% was recorded by its Investor Class: APFDX, 17% by its Advisor Class: APDDX, and 17.05% by its Institutional Class: APHDX, in the fourth quarter of 2020, outperforming its MSCI All Country World benchmark that delivered a 14.68% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Artisan Global Discovery Fund, in their Q4 2020 investor letter, mentioned Chegg, Inc. (NYSE: CHGG) and emphasized their views on the company. Chegg, Inc. is a California-based education technology company that currently has a $12.9 billion market capitalization. Since the beginning of the year, CHGG delivered a 1.84% return, impressively extending its 12-month gains to 184.71%. As of March 16, 2021, the stock closed at $91.99 per share.
Here is what Artisan Global Discovery Fund has to say about Chegg, Inc. in their Q4 2020 investor letter:
“We started new investment campaigns in Chegg. Chegg is a digital education platform which provides online math, writing and other learning services with a low-cost monthly subscription. The company is well-positioned to help students who may not have access to traditional assistance resources. We also suspect the pandemic is accelerating many longer-term changes in higher education—more remote learning, more focus on student outcomes, pressure on tuition—and we believe Chegg will be a beneficiary. Given this tailwind, the opportunity to add new customers in a lightly penetrated US market (~25%-30% of higher-ed enrollments today), the company’s expansion into international markets and the addition of new services such as online coding certifications, we believe the profit cycle ahead is compelling.”
Our calculations show that Chegg, Inc. (NYSE: CHGG) 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, Chegg, Inc. was in 33 hedge fund portfolios, compared to 42 funds in the third quarter. CHGG delivered a 7.39% 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.
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 15 best innovative stocks to buy 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 website:
Disclosure: None. This article is originally published at Insider Monkey.