Is Upland Software Inc. (UPLD) A Smart Long-Term Buy?

Bernzott Capital Advisors, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 10.27% was recorded by the fund for the Q1 of 2021, below the Russell 2000 Value and Russell 2500 Value Index that delivered a 21.17% and 16.83% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Bernzott Capital Advisors, in their Q1 2021 investor letter, mentioned Upland Software, Inc. (NASDAQ: UPLD), and shared their insights on the company. Upland Software, Inc. is a Austin, Texas-based software company that currently has a $1.4 billion market capitalization. Since the beginning of the year, UPLD delivered a 1.57% return, extending its 12-month gains to 45.66%. As of May 05, 2021, the stock closed at $46.61 per share.

Here is what Bernzott Capital Advisors has to say about Upland Software, Inc. in their Q1 2021 investor letter:

“Upland Software (UPLD): Upland Software is led by a strong management team executing a known playbook. It operates in an attractive industry with a business model characterized by high recurring revenues, strong profitability and healthy cash flow. Having demonstrated resilient results during the pandemic, Upland Software recently resumed its acquisition program, building upon its 26 deals prior to 2021. Its first considerable investment in its sales and marketing organization should bear fruit over the next year and elevate organic growth to mid- to high-single-digit rates through increased customer penetration and cross-selling. Increased scale and rising free cash flow will obviate the need for additional equity capital and enable the company to begin deleveraging while continuing its acquisition program. Lastly, its reasonable valuation allows for multiple expansion.”


Our calculations show that Upland Software, Inc. (NASDAQ: UPLD) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Upland Software, Inc. was in 21 hedge fund portfolios, compared to 22 funds in the third quarter. UPLD delivered a -6.89% 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.