Is LENSAR Inc. (LNSR) A Smart Long-Term Buy?

Merion Road Capital Management, an investment management firm, published its fourth-quarter 2020 Investor Letter for its ‘MRCM Long Short Small Cap’ and ‘MRCM Long Only Large Cap’– a copy of which can be downloaded here. A return of 11.5% was recorded by its Long Short Small Cap fund for the Q4 of 2020, outperforming its Barclay Hedge Fund index that made a 9% return, but below its Russell 2000 benchmark that delivered 31.3%. Its Long Only Large Cap fund delivered a 21.2% return, above its S&P 500 benchmark that accumulated 12.1%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Merion Road Capital Management, in their Q4 2020 Investor Letter, said that LENSAR, Inc. (NASDAQ: LNSR) was added in their ‘Small Cap’ portfolio during the fourth quarter of 2020. LENSAR, Inc. is a company that develops laser technologies and serves the healthcare industry. It currently has an $88.1 million market cap. For the past 3 months, LNSR delivered a -3.38% return and settled at $8.29 per share at the closing of February 11th.

Here is what Merion Road Capital Management has to say about LENSAR, Inc. in their Q4 2020 investor letter:

“During the past quarter initiated a position in Lensar (“LNSR”). LNSR is a micro-cap spin-off from PDL Biopharma that has faced selling pressure from investor rotation as well as tax-loss harvesting. I wrote a longer piece on LNSR that I posted to my website, and for brevity sake I will refer you to if you are interested in reading more.”


LNSR delivered a 14.34% return YTD. Our calculations show that LENSAR, Inc. (NASDAQ: LNSR) does not belong in our list of 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

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Disclosure: None. This article is originally published at Insider Monkey.