Roubaix Capital LLC, an investment management firm, published its ‘Roubaix Fund Composite’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 26.63% was recorded by the fund for the Q4 of 2020, outperforming its HFRI Equity Hedge benchmark that delivered a 14.50% return but below its Russell 2000 index that had a 31.37% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Roubaix Capital, in their Q4 2020 Investor Letter, said that Repro Med Systems, Inc. (NASDAQ: KRMD) was the largest detractor for their portfolio in the fourth quarter of 2020. Repro Med Systems, Inc. is a medical device designer and manufacturing company that currently has a $192 million market cap. For the past 3 months, KRMD delivered a 9.25% return and settled at $4.37 per share at the closing of February 12th.
Here is what Roubaix Capital has to say about Repro Med Systems, Inc. in their Q4 2020 investor letter:
“The largest detractor in the long portfolio during the fourth quarter was Repro Med Systems (KRMD). We originally invested in KRMD due to their pump system that delivers drugs subcutaneously. This method of delivery is well suited for certain therapies and it can be done in the convenience of a patient’s home, replacing a visit to a doctor’s office. As a result, the patient has a better experience, and the healthcare system saves costs by avoiding the charges that come with office visits. We see more convenient and lower cost delivery of healthcare as a trend that will be accelerated by the pressures caused by the pandemic. Unfortunately for KRMD, their main product’s production is tied to the collection of blood plasma. As the pandemic kept people at home, supply became constrained. This put pressure on KRMD’s business, and their pipeline was not far enough along to provide an offset. We exited our position in the stock but continue to monitor it and other companies that benefit from this powerful trend to make healthcare delivery more efficient.”
Chaikom/Shutterstock.com
Last December, we published an article telling that Repro Med Systems, Inc. (NASDAQ: KRMD) was in 15 hedge fund portfolios. KRMD delivered a -27.53% return in the past 12 months.
Our calculations show that Repro Med Systems, Inc. (NASDAQ: KRMD) does not belong in our list of 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
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.
Disclosure: None. This article is originally published at Insider Monkey.
