Wasatch Core Growth Fund recently released its Q2 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 8.6% for the quarter, outperforming its benchmark, the Russell 2000 Index which returned 4.3% in the same quarter. You should check out Wasatch’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 Focus Financial Partners Inc. (NASDAQ:FOCS) is one of them. Focus Financial Partners Inc. (NASDAQ:FOCS) provides wealth management services. In the last three months, Focus Financial Partners Inc. (NASDAQ:FOCS) stock lost 4%. Here is what the fund said:
“Focus Financial provides holistic wealthmanagement services. The company offers financial planning, asset allocation, asset management and tax preparation. What we like most about Focus Financial is that the company is taking ownership stakes in independent, ultra-high-networth investment advisory firms around the world. This is attractive for the advisory firms because they: (1) get to continue operating with significant independence; (2) gain access to an expanded menu of top-notch products and services for clients; (3) get to maintain their legacy as a highquality firm; and (4) receive immediate cash in exchange for giving up some ownership. Focus Financial has seen extremely strong revenues and earnings because it has the infrastructure to rapidly grow the investment advisory firms that were started by talented entrepreneurs. Of all businesses, advisory firms achieve some of the best economies of scale due to the fact that fixed costs pale in comparison to asset-based revenues.”
Photo by Scott Graham on Unsplash
In Q1 2021, the number of bullish hedge fund positions on Focus Financial Partners Inc. (NASDAQ:FOCS) stock increased by about 156% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in FOCS’s growth potential. Our calculations showed that Focus Financial Partners Inc. (NASDAQ:FOCS) isn’t ranked 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.
