Is Grand Canyon Education Inc. (LOPE) A Smart Long-Term Buy?

Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 15.42% was recorded by the fund’s investor class for the Q1 of 2021, trailing the benchmark, Russell 2000® Value Index, that rose to 21.17% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Small Cap Value Fund, in its Q1 2021 investor letter, mentioned Grand Canyon Education, Inc. (NASDAQ: LOPE), and shared their insights on the company. Grand Canyon Education, Inc. is a Phoenix, Arizona-based educational service company that currently has an $4.3 billion market capitalization. LOPE delivered a -16.40% return in the past month, while its 12-month gains are down by -1.16%. As of May 11, 2021, the stock closed at $93.11 per share.

Here is what Wasatch Small Cap Value Fund has to say about Grand Canyon Education, Inc. in its Q1 2021 investor letter:

“Grand Canyon Education, Inc. (LOPE)—a Fallen Angel that we have followed for a decade but had not owned until now—was among our notable purchases in the quarter. We believe Grand Canyon is the best-positioned publicly traded for-profit education company due to its strong brand, unique on-campus and online educational environments, and long runway of opportunity.”


Our calculations show that Grand Canyon Education, Inc. (NASDAQ: LOPE) 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, Grand Canyon Education, Inc. was in 26 hedge fund portfolios, compared to 32 funds in the third quarter. LOPE delivered a -6.77% 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.