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 Zoom Video Communications Inc. (NASDAQ:ZM) is one of them. Zoom Video Communications Inc. (NASDAQ:ZM) is a communications technology company. In the last three months, Zoom Video Communications Inc. (NASDAQ:ZM) stock lost 17% and on January 29th it had a closing price of $372.07. Here is what Alger Mid Cap Focus Fund said:
“Zoom Video Communications offers a cloud-native, video-first communications platform that transforms how people communicate. interact and work together. It offers a better, more efficient experience. easy onboarding and use and capabilities for addressing enterprise needs around scalability. cost and minimal IT involvement. The company seeks to make video collaboration that “just works,” delivering high-quality and frictionless video. voice. chat and content sharing across multiple devices and mediums. Users of Zoom benefit from a platform that is easy to deploy, use and manage that is also scalable and can easily integrate with any workspace, facilitating greater work effectiveness.
Zoom has experienced explosive growth in revenues and profitability in 2020 as it has been one of the biggest beneficiaries of the work from anywhere trend resulting from the pandemic. The company saw rapid adoption of its service across enterprise customers. small and medium businesses and individuals. This adoption extended across sectors like education, health care, government and financial services. The price of Zoom shares declined in the fourth quarter after climbing approximately 591% during the first nine months of the year. Some investors believe that Zoom revenue growth and margins have peaked. However. we believe that Zoom is positioned to generate strong revenues and profitability. but it faces the possibility of employees returning to their workplace once the vaccine gets widely distributed. We believe the company is positioned to generate attractive long¬term performance, but its shares could potentially remain range bound until a normalized growth trajectory emerges.”
In Q3 2020, the number of bullish hedge fund positions on Zoom Video Communications Inc. (NASDAQ:ZM) stock increased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Zoom’s growth potential. Our calculations showed that Zoom Video Communications Inc. (NASDAQ:ZM) 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.