Maran Capital on American Outdoor Brands (AOUT): “Valuation Remains Undemanding”

Maran Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +22.5% was delivered by the fund for the Q1 of 2021. Over the past five years, the partnership has compounded at a rate of +19.8%, net. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Maran Capital Management, in their Q1 2021 investor letter, mentioned American Outdoor Brands, Inc. (NASDAQ: AOUT), and shared their insights on the company. American Outdoor Brands, Inc. is a Columbia, Missouri-based outdoor sports and recreation products manufacturer that currently has a $362.3 million market capitalization. Since the beginning of the year, AOUT delivered a 36.20% return, extending its 12-month gains to 51.79%. As of April 30, 2021, the stock closed at $25.85 per share.

Here is what Maran Capital Management has to say about American Outdoor Brands, Inc. in their Q1 2021 investor letter:

American Outdoor Brands (AOUT) –Trends remain strong in the outdoor industry. Over the past two quarters, AOUT has raised its FY EBITDA guidance from $20mm to $44mm! Valuation remains undemanding.”

Our calculations show that American Outdoor Brands, Inc. (NASDAQ: AOUT) 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, American Outdoor Brands, Inc. was in 13 hedge fund portfolios, compared to 10 funds in the third quarter. AOUT delivered a -0.84% 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.