Brown Capital Management Mid Company Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 6.15% (inst. class) for the quarter, underperforming its benchmark, the Russell Midcap Growth Index which returned 9.4% in the same quarter. You should check out Brown Capital Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Brown Capital Management highlighted a few stocks and Jack Henry & Associates Inc (NASDAQ:JKHY) is one of them. Jack Henry & Associates Inc (NASDAQ:JKHY) is a technology company and payment processing services for the financial services industry. Year-to-date, Jack Henry & Associates Inc (NASDAQ:JKHY) stock gained 8.9% and on December 15th it had a closing price of $158.60. Here is what Brown Capital Management said:
“Jack Henry & Associates provides core technology and transaction-processing solutions to small U.S. banks and credit unions. The long-term contracts for financial institutions’ ledger systems make Jack Henry a popular choice as these institutions expand services to banking customers. The company’s Banno platform allows small banks and credit unions to replicate the digital capabilities of their larger competitors. Additionally, Jack Henry’s growing private cloud-based solutions relieve customers from managing servers, people and software on site, resulting in savings and allowing them to focus on their banking customers.
This generally stable company experienced an 11% share-price decline in the third quarter as COVID-19- related safety protocols slowed down Jack Henry’s ability to deploy new products at customer sites. This slowdown showed up in both second-quarter sales trends and the company’s outlook for the year. Ultimately, we take a longer-term view that Jack Henry remains a critical vendor to its clients. We added to our position during the quarter and believe that Jack Henry can drive years of profitable growth by continuing to expand its product lineup and by being a cost-effective outsourcing partner to financial institutions.”
In Q2 2020, the number of bullish hedge fund positions on Jack Henry & Associates Inc (NASDAQ:JKHY) stock increased by about 15% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in JKHY’s growth potential. Our calculations showed that Jack Henry & Associates Inc (NASDAQ:JKHY) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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 most profitable companies in the world to pick the best large-cap stocks to buy. 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 website:
Disclosure: None. This article is originally published at Insider Monkey.