Roper (ROP) Remains ‘Laser-Focused’ on Boosting Cash Flows: Andvari Associates

Andvari Associates, an investment management firm, published its Q4 2020 Investor Letter – a copy of which can be seen here. The fund posted a return of 31.1% for 2020, outperforming its S&P 500 benchmark that delivered an 18.4% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Andvari Associates in their Q4 letter said that Roper Technologies, Inc. (NYSE: ROP) was one of their holdings that made a significant acquisition last 2020. Roper Technologies, Inc. is a technology company that currently has a $42.6 billion market cap. For the past 3 months, ROP delivered a 4.40% return and settled at $404.95 per share at the closing of February 5th.

Here is what Andvari Associates has to say about Roper Technologies, Inc. in their investor letter:

“Another Andvari holding that made a significant acquisition last year is Roper Technologies. We’ve owned Roper since 2015 and it is a company laser-focused on compounding their cash flows. Their objective is to use their excess cash flows to acquire other businesses that improve Roper’s overall financial characteristics. Over the last two decades, Roper has evolved from a maker of industrial pumps to a conglomerate that owns dozens of high-tech and software businesses.

Roper announced last August they’d be acquiring Vertafore for $5.35 billion, the  largest acquisition in its history. Vertafore is a leading provider of software-as-a-service solutions for the property and casualty insurance industry. The business seems a great fit for Roper: it has strong cash flows, it doesn’t require capital to grow, it’s a leader in a niche market, and revenues are recurring in nature.”

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Last December 2020, we published an article of Del Principe O’ Brien Financial Advisors’ investment thesis on Roper Technologies, Inc. (NYSE: ROP). ROP delivered a 3.79% return in the past 12 months.

Our calculations show that Roper Technologies, Inc. (NYSE: ROP) 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

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Disclosure: None. This article is originally published at Insider Monkey.