Bernzott Capital Advisors recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 8.61% (net) for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 2.56% in the same quarter. You should check out Bernzott Capital Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Bernzott Capital Advisors highlighted a few stocks and Shutterstock Inc. (NYSE:SSTK) is one of them. Shutterstock Inc. (NYSE:SSTK) is a stock photography company. Year-to-date, Shutterstock Inc. (NYSE:SSTK) stock gained 57.6% and on December 11th it had a closing price of $67.58. Here is what Bernzott Capital Advisors said:
“Shutterstock (SSTK): Reported blowout Q2 results with EBITDA +47% Y/Y and reaching a quarterly record thanks to massive operational improvements. EBITDA margins were 23.3%, up nearly 800bps vs. last quarter as well as Q2 2019. The company remains focused on growing its recurring revenue and continues to see success with subscriber revenue +8% Y/Y to $63mm and represented 39% of total revenues, up from 36% last year.”
In Q1 2020, the number of bullish hedge fund positions on Shutterstock Inc. (NYSE:SSTK) stock decreased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Shutterstock’s growth potential. Our calculations showed that Shutterstock Inc. (NYSE:SSTK) 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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