Baron Discovery Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Discovery Fund returned 25.54% (institutional shares). This was 4.07% lower 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 Q4 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and Par Technology Corp (NYSE:PAR) is one of them. Par Technology Corp (NYSE:PAR) is a provider of systems and service solutions for the hospitality industry. In the last three months, Par Technology Corp (NYSE:PAR) stock gained 82% and on February 1st it had a closing price of $68.87. Here is what Baron Discovery Fund said:
“Shares of PAR Technology Corporation, a leading provider of software, systems, and service solutions to the restaurant industry, rose during the quarter as pandemic-driven restaurant investment in technology fueled business momentum. This was evident in the company’s third quarter earnings report which showed solid bookings momentum. The company also issued equity in the quarter to bolster its balance sheet in order to pursue acquisitions to accelerate annual recurring software revenue growth. Given PAR’s superior product and limited competition, we believe it is in an excellent position for long-term growth as the restaurant industry continues adopting technology, a necessity in the world after COVID. We also believe PAR will have several opportunities for further accretive acquisitions to add to its software stack and market opportunity. Given the strong appreciation of the stock during year, we reduced the position in the fourth quarter.”
In Q3 2020, the number of bullish hedge fund positions on Par Technology Corp (NYSE:PAR) stock increased by about 20% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in PAR’s growth potential. Our calculations showed that Par Technology Corp (NYSE:PAR) 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
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Disclosure: None. This article is originally published at Insider Monkey.