Baron Discovery Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Discovery Fund returned 18.83% (institutional shares). This was 11.67% better than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and Kinsale Capital Group Inc. (NASDAQ:KNSL) is one of them. Kinsale Capital Group Inc. (NASDAQ:KNSL) is an insurance company. Year-to-date, Kinsale Capital Group Inc. (NASDAQ:KNSL) stock gained 139.2% and on December 1st it had a closing price of $243.12. Here is what Baron Discovery Fund said:
“Specialty insurer Kinsale Capital Group, Inc. outperformed after reporting strong financial results for the second quarter, highlighted by 41% premium growth and 48% earnings per share growth. Insurance market conditions remain favorable as competitors reduce capacity and increase premium rates after years of underpricing risk. Management expects these positive industry trends to persist and does not anticipate any material impact to growth or profitability related to the COVID-19 pandemic. While Kinsale’s stock has been a strong performer since our initial purchases back in 2016, we remain bullish on the company’s growth opportunities given its relatively small market share (less than 1%) in an attractive segment of the insurance market.”
In Q1 2020, the number of bullish hedge fund positions on Kinsale Capital Group Inc. (NASDAQ:KNSL) stock decreased by about 36% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Kinsale’s growth potential. Our calculations showed that Kinsale Capital Group Inc. (NASDAQ:KNSL) 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.