Baron Partners Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Partners Fund returned 47.15% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.93%, while the Russell Midcap Growth Index was up 9.37%. You should check out Baron Partners Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Baron Partners Fund highlighted a few stocks and Spotify Technology S.A. (NYSE:SPOT) is one of them. Spotify Technology S.A. (NYSE:SPOT) is a digital music-streaming service. Year-to-date, Spotify Technology S.A. (NYSE:SPOT) stock gained 113.8% and on December 4th it had a closing price of $319.77. Here is what Baron Partners Fund said:
“Spotify Technology S.A. is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions as well as a free ad-supported model. Shares were down as second quarter revenues were negatively impacted by a pandemic-related pullback in advertising spend. We continue to view Spotify as a long-term winner in music streaming. It has potential to grow from 138 million paying subscribers to over 250 million in four years. This growth will be driven by its scalable core music product and expanding library of spoken-word content.”
In Q2 2020, the number of bullish hedge fund positions on Spotify Technology S.A. (NYSE:SPOT) stock decreased by about 10% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Spotify’s growth potential. Our calculations showed that Spotify Technology S.A. (NYSE:SPOT) 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.