Is NVIDIA Corp. (NVDA) A Smart Long-Term Buy?

Mairs & Power, an investment management firm, published its fourth-quarter 2020 ‘Growth Fund’ Investor Letter – a copy of which can be downloaded here. A return of 13.88% was recorded by the fund in the fourth quarter of 2020, outperforming its S&P 500 TR benchmark that delivered a 12.15% return, but below the Lipper Multi Cap Core Funds index that posted gains of 15.69% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.op 5 holdings to have a peek at their top bets for 2021.

Mairs & Power, in their Q4 2020 investor letter, mentioned NVIDIA Corporation (NASDAQ: NVDA) and emphasized their views on the company. NVIDIA Corporation is a California-based computer systems design services company. It currently has a $314.6 billion market capitalization. Since the beginning of the year, NVDA delivered a -2.79% return, while its 12-month gains is decently up by 105.96%. As of March 9, 2021, the stock closed at $500.81 per share.

Here is what Mairs & Power has to say about NVIDIA Corporation in their Q4 2020 investor letter:

“The Fund’s biggest relative contributor in 2020 was Nvidia (NVDA). Nvidia specializes in graphics cards for computers, and it has benefited from updated chipsas well as strong market positions in applications and machine learning.”

Iaroslav Neliubov/

Our calculations show that NVIDIA Corporation (NASDAQ: NVDA) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, NVIDIA Corporation was in 88 hedge fund portfolios, compared to 82 funds in the third quarter. NVDA delivered a -1.26% 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.