Is Pure Cycle Corporation (PCYO) A Good Investment Choice?

Maran Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +22.5% was delivered by the fund for the Q1 of 2021. Over the past five years, the partnership has compounded at a rate of +19.8%, net. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Maran Capital Management, in their Q1 2021 investor letter, mentioned Pure Cycle Corporation (NASDAQ: PCYO), and shared their insights on the company. Pure Cycle Corporation is a Thornton, Colorado-based water services company that currently has a $365 million market capitalization. Since the beginning of the year, PCYO delivered a 35.98% return, extending its 12-month gains to 55.18%. As of April 30, 2021, the stock closed at $15.27 per share.

Here is what Maran Capital Management has to say about Pure Cycle Corporation in their Q1 2021 investor letter:

Pure Cycle (PCYO) – PCYO’s scarce land and water assets continue to appreciate, and the pace of monetization is accelerating. PCYO continues to execute on delivering affordable lots into the tight Denver real estate market, which is marked by an acute shortage of entry-level homes.”

Our calculations show that Pure Cycle Corporation (NASDAQ: PCYO) 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, Pure Cycle Corporation was in 9 hedge fund portfolios, compared to 11 funds in the third quarter. PCYO delivered a 43.11% 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.