Baron Discovery Fund recently published its first-quarter commentary – a copy of which can be downloaded here. During the first quarter of 2021, the Baron Discovery Fund returned 7.5% (institutional shares). This was 2.59% higher than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Montrose Environmental Group Inc. (NYSE:MEG) is one of them. Montrose Environmental Group Inc. (NYSE:MEG) operates as an environmental company. In the last three months, Montrose Environmental Group Inc. (NYSE:MEG) stock gained 40.0% and on May 5th it had a closing price of $57.03. Here is what the fund said:
“Montrose Environmental Group, Inc. is a leading environmental services company with operations across North America, Australia, and Europe. The stock outperformed during the quarter as investors became increasingly aware of Montrose’s growth opportunities. The company provides solutions that offer customers a full suite of environmental services, including permitting, testing, and remediation, that are centered around air, soil, and water. Montrose’s capabilities are increasingly aligned with political and regulatory priorities, which provides support for the company’s expected strong growth. Montrose is growing revenues organically in the mid- to high single-digit range and, combined with acquisitions, it expects to grow revenues over 20% per year for years into the future. The environmental services industry is highly fragmented, and Montrose had only $328 million in 2020 revenues, a small fraction of the $1.25 trillion global market. We continue to think that Montrose has a long runway of growth as it becomes a national scale provider in the industry.”
Baron Discovery Fund has been a long time Montrose Environmental Group Inc. (NYSE:MEG) bull. In December 2020, we shared Baron Discovery Fund’s bullish MEG’s thesis in this article.
Our calculations showed that Montrose Environmental Group Inc. (NYSE:MEG) 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.
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Disclosure: None. This article is originally published at Insider Monkey.