Is CrossFirst Bankshares, Inc. (CFB) A Smart Long-Term Buy?

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 14.74% was recorded by the fund’s investor class for the Q1 of 2021, trailing the benchmark, Russell Microcap® Index, which leapt 23.89% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Micro Cap Value Fund, in its Q1 2021 investor letter, mentioned CrossFirst Bankshares, Inc. (NASDAQ: CFB), and shared their insights on the company. CrossFirst Bankshares, Inc. is a Leawood, Kansas-based bank holding company that currently has a $745.7 million market capitalization. Since the beginning of the year, CFB delivered a 34.23% return, extending its 12-month gains to 75.76%. As of May 10, 2021, the stock closed at $14.43 per share.

Here is what Wasatch Micro Cap Value Fund has to say about CrossFirst Bankshares, Inc. in its Q1 2021 investor letter:

“While the Fund typically has light exposure to cyclical companies in financials, energy and materials, we’re watching for interesting opportunities in these sectors. For example, we recently purchased CrossFirst Bankshares, Inc. (CFB), a well-managed holding company that offers personal banking, wealth management, loans, savings accounts, leasing services, retirement plans, investment management and insurance to customers mainly in Kansas, Oklahoma and Texas. Due to the company’s exposure to the energy business, the stock was beaten down during the Covid-related economic slowdown. Now that energy prices have firmed, we think the prospects for CrossFirst have improved. But the stock price hasn’t yet fully reflected the better conditions in our view.”

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Our calculations show that CrossFirst Bankshares, Inc. (NASDAQ: CFB) 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, CrossFirst Bankshares, Inc. was in 7 hedge fund portfolios, compared to 3 funds in the third quarter. CFB delivered a 17.13% 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.