Wasatch Advisors, an employee-owned investment manager, published its ‘Wasatch Micro Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.62% was recorded by the fund for the Q3 of 2020, above its Russel Microcap benchmark that returned 3.69%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Wasatch Advisors, in their Q3 2020 Investor Letter said that they still believe in the capabilities of PaySign, Inc. (NASDAQ: PAYS) even if it performed poorly last quarter, they project that the company will improve together with the recovery of the economy. PaySign, Inc. is an IT service management company that currently has a $237 million market cap. For the past 3 months, PAYS delivered a -15.28% return and settled at $4.73 per share at the closing of January 15th.
Here is what Wasatch Advisors has to say about PaySign, Inc. in their Investor Letter:
“The greatest detractor from Fund performance during the third quarter was Paysign, Inc. (PAYS). The company develops and manages payment services, prepaid-card programs and customized payment plans. A large portion of Paysign’s business comes from blood banks. With many of the usual blood donors receiving government assistance and limiting their personal interactions, activity at blood banks has declined. At the lower share prices recently available, we increased our position in Paysign because we think payment activity will accelerate as the economy continues to reopen and people resume more of their normal routines.”
As of September 2020, Wasatch Advisors had a 1.8 million share position in PAYS that amounted to $10.7 million. However, our calculations showed that PaySign, Inc. (NASDAQ: PAYS) does not belong to the 30 most popular stocks among hedge funds. PAYS delivered a 2.91% YTD.
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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