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 Red Rock Resorts Inc. (NASDAQ:RRR) is one of them. Red Rock Resorts Inc. (NASDAQ:RRR) is a gaming, development and management company. In the last three months, Red Rock Resorts Inc. (NASDAQ:RRR) stock gained 23.4% and on February 2nd it had a closing price of $23.90. Here is what Baron Discovery Fund said:
“During the quarter we repurchased shares of prior holding, Red Rock Resorts, Inc. The company, an operator of casinos that cater to residents in the locals Las Vegas market, reported strong third quarter results. Gaming revenue was up year-over-year despite the fact the company had 4 of its 10 casinos closed during the quarter. Significant cost improvements postCOVID has also led to significant margin improvement. We believe that coming out of COVID, the company will benefit from pent-up demand for leisure and entertainment combined with a permanently lower cost structure. As a result, we think a stronger and leaner Red Rock will show significant profit and free cash flow growth over the next few years.”
In Q2 2020, the number of bullish hedge fund positions on Red Rock Resorts Inc. (NASDAQ:RRR) stock increased by about 20% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in RRR’s growth potential. Our calculations showed that Red Rock Resorts Inc. (NASDAQ:RRR) 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.