Should You Consider Investing in Holdings (ALRM)?

Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.99% was delivered by the fund for the first quarter of 2021, trailing its Russell 2000 Growth benchmark that delivered a 4.87% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Polen U.S. Small Company Growth Fund, in its Q1 2021 investor letter, mentioned Holdings, Inc. (NASDAQ: ALRM), and shared their insights on the company. Holdings, Inc. is a Fairfax, Virginia-based home automation company that currently has a $4 billion market capitalization. Since the beginning of the year, ALRM delivered a -21.57% return, while its 12-month gains are up by 75.02%. As of May 21, 2021, the stock closed at $79.82 per share.

Here is what Polen U.S. Small Company Growth Fund has to say about Holdings, Inc. in its Q1 2021 investor letter: is the leading technology platform for smart home security systems and providers. The company continues to benefit from growth in the residential market. While this was accelerated by the pandemic, we think this performance is far from a onetime gain given the recurring nature of the revenue and high customer retention. Furthermore, we believe commercial and international business will improve as the pandemic subsides.”

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Our calculations show that Holdings, Inc. (NASDAQ: ALRM) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Holdings, Inc. was in 20 hedge fund portfolios. ALRM delivered a -14.29% 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.