Is Middleby Corp (MIDD) a Smart Long-term Buy?

Alger Mid Cap Focus Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. Class Z shares of the Alger Mid Cap Focus Fund outperformed the Russell Midcap Growth Index during the third quarter of 2020. You should check out Alger Mid Cap Focus Fund’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, Alger Mid Cap Focus Fund highlighted a few stocks and Middleby Corp (NASDAQ:MIDD) is one of them. Middleby Corp (NASDAQ:MIDD) is a global leader in the foodservice equipment industry. Year-to-date, Middleby Corp (NASDAQ:MIDD) stock gained 15.5% and on December 28th it had a closing price of $126.48. Here is what Alger Mid Cap Focus Fund said:

“Middleby Corp. sells foodservice equipment. It operates through three segments: Commercial Foodservice, Food Processing and Residential Kitchen. The Commercial Foodservice segment offers foodservice equipment that enables cooking and warming applications in restaurants and commercial kitchens. The Food Processing segment includes processing equipment and solutions for customers producing pre-cooked meat products and bakery products. The Residential Kitchen segment sells cookers, stoves, ovens, refrigerators, cooktops, wine coolers, ice machines and outdoor equipment for the residential market. Following a sharp second quarter recovery from a Covid-19 low price in March. the shares underperformed in the third quarter. The company’s second quarter revenues were better than consensus expectations but demand for Middleby’s Commercial Foodservice equipment declined sharply in response to restaurants closing or operating at reduced capacity due to the pandemic; however, demand is showing signs of improvement and demand from quick-serve restaurant chains and institutional kitchens has been resilient. Additionally, Middleby is benefitting from demand for freshly prepared food delivered to the home while the work-from-home trend is driving increased expenditures on residential kitchen equipment.”

Africa Studio/

In Q3 2020, the number of bullish hedge fund positions on Middleby Corp (NASDAQ:MIDD) stock increased by about 15% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Middleby’s growth potential. Our calculations showed that Middleby Corp (NASDAQ:MIDD) 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.