Is Sprouts Farmers Market (SFM) A Smart Long-Term Buy?

Appleseed Fund, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. A return of 14.49% was recorded by the fund for the Q1 of 2021, outperforming its MSCI World benchmark that delivered a 4.92% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Appleseed Fund, in its Q1 2021 investor letter, mentioned Sprouts Farmers Market, Inc. (NASDAQ: SFM), and shared their insights on the company. Sprouts Farmers Market, Inc. is a Phoenix, Arizona-based supermarket company that currently has a $3 billion market capitalization. Since the beginning of the year, SFM delivered a 29.23% return, while its 12-month gains are up by 4.91%. As of May 26, 2021, the stock closed at $25.76 per share.

Here is what Appleseed Fund has to say about Sprouts Farmers Market, Inc. in its Q1 2021 investor letter:

“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Sprouts Famers Markets (SFM). Sprouts has benefited from the market slowly recognizing that the company’s growth last year was only driven in part by lockdowns; the company should enjoy strong growth through market share gains for years to come. Sprouts’ unique value proposition as a particularly attractive store in which shoppers can find a wide assortment of organic and natural produce should benefit shareholders and consumers alike.”

Aleksandar Mijatovic/

Our calculations show that Sprouts Farmers Market, Inc. (NASDAQ: SFM) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Sprouts Farmers Market, Inc. was in 21 hedge fund portfolios, compared to 25 funds in the fourth quarter of 2020. SFM delivered a 26.85% 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.