Is HubSpot (HUBS) A Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge Mid Cap Growth Strategy outperformed the benchmark Russell Midcap Growth Index. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned HubSpot, Inc. (NYSE: HUBS), and shared their insights on the company. HubSpot, Inc. is a Cambridge, Massachusetts-based software company that currently has a $22.6 billion market capitalization. Since the beginning of the year, HUBS delivered a 21.79% return, extending its 12-month gains to 129.74%. As of June 01, 2021, the stock closed at $492.03 per share.

Here is what ClearBridge Investments has to say about HubSpot, Inc. in its Q1 2021 investor letter:

HubSpot develops marketing automation software and is seeing strong uptake post-pandemic from small businesses that are far behind in digitally enabling their marketing, sales and related processes. HubSpot’s initial marketing product facilitates publishing of content to attract customers and nurture leads, but the company has seen growth accelerate as it makes progress selling a full suite of service and sales products to help with inbound customer support and converting leads.”


Our calculations show that HubSpot, Inc. (NYSE: HUBS) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, HubSpot, Inc. was in 46 hedge fund portfolios, compared to 52 funds in the fourth quarter of 2020. HUBS delivered a -2.66% 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.