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 Stamps.com Inc (NASDAQ:STMP) is one of them. Stamps.com Inc (NASDAQ:STMP) provides Internet-based mailing and shipping services. In the last three months, Stamps.com Inc (NASDAQ:STMP) stock gained 6.2% and on January 29th it had a closing price of $228.31. Here is what Alger Mid Cap Focus Fund said:
“Stamps.com provides internet-based mailing and shipping solutions to individuals, small businesses, e-commerce shippers. enterprises and high-volume shippers. Through its portfolio of branded solutions and more than 500 unique integrations with marketplaces, shopping carts, e-commerce tools and shipping software platforms, Stamps.com software allows its nearly one million members to print mailing and shipping labels for multiple carriers around the world. Stamps.com has a unique and defensible competitive position in the market as one of only a few U.S. Postal Service-approved third-party PC-based postage vendors, and we believe the company is well-positioned to benefit from the secular shift toward e-commerce, which has been accelerated by Covid-19. Although Stamps.com’s stock price climbed 135% in 2020. its shares underperformed after the company released its earnings report for the third quarter in early November. Specifically, the company’s guidance included a significant slowdown in fourth quarter estimated revenue growth. More broadly, investors are also concerned about the company facing difficult year-over-year comparisons in 2021. More recently, e-commerce and shipping data points have largely remained strong through the holiday period, which led to a modest recovery in the company’s share price heading into year-end.”
In Q3 2020, the number of bullish hedge fund positions on Stamps.com Inc (NASDAQ:STMP) stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in STMP’s growth potential. Our calculations showed that Stamps.com Inc (NASDAQ:STMP) 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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