Alger Mid Cap Focus Fund recently released its Q4 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 fourth 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 Q4 2020 Investor Letter, Alger Mid Cap Focus Fund highlighted a few stocks and Roku Inc (NASDAQ:ROKU) is one of them. Roku Inc (NASDAQ:ROKU) manufactures a variety of digital media players for video streaming. In the last three months, Roku Inc (NASDAQ:ROKU) stock gained 97% and on January 28th it had a closing price of $404.01. Here is what Alger Mid Cap Focus Fund said:
“Roku. Inc. is a leading connected TV streaming platform company. with 46 million global active accounts having streamed 14.8 billion hours of content in the third quarter. Roku’s player segment sells Roku streaming players and related accessories. Its second segment, the platform segment, monetizes user activity on the Roku streaming platform, primarily through advertising and content distribution. Roku stock outperformed in the fourth quarter after the company announced strong earnings for the three-month period ended September 30 that demonstrated strong demand for connected TV amid the pandemic.
Roku said the pause of live sports caused many consumers to change how they access home entertainment. leading to a 54% year-over-year increase in hours streamed on the Roku platform. More importantly, the quarterly results demonstrated 78% year¬over-year growth in platform revenue, driven by advertising buyers reallocating ad spending toward Roku to reach this growing segment of customers who no longer watch linear TV, which is delivered through cable or broadcasted over the air.
Furthermore. the stock reacted positively to announcements about new distribution agreements to stream Comcast’s Peacock channel and Warner Media’s HBO Max channel through the Roku platform. These agreements are strong evidence that many major media companies are continuing to reorganize content distribution strategies around streaming. with Roku being an increasingly important part of the connected TV ecosystem. We think Roku is well-positioned to continue to benefit from the increasing importance of connected TV and the corresponding shift of advertising to streaming platforms.”
In Q3 2020, the number of bullish hedge fund positions on Roku Inc (NASDAQ:ROKU) stock increased by about 44% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Roku’s growth potential. Our calculations showed that Roku Inc (NASDAQ:ROKU) 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.