Should You Consider Investing in Zillow Group (Z)?

Baron Funds, an asset management firm, published its “Baron Partners Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A decline of 0.38% was delivered by the fund’s institutional shares for the Q1 of 2021, while the Index declined 0.57% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Baron Partners Fund, in its Q1 2021 investor letter, mentioned Zillow Group, Inc. (NASDAQ: Z), and shared their insights on the company. Zillow Group, Inc. is a Seattle, Washington-based online real estate marketplace company that currently has a $26.8 billion market capitalization. Since the beginning of the year, Zillow delivered a -17.27% return, extending its 12-month gains to 126.25%. As of May 12, 2021, the stock closed at $108.72 per share.

Here is what Baron Partners Fund has to say about Zillow Group, Inc. in its Q1 2021 investor letter:

Zillow Group, Inc. operates leading U.S. real estate sites, a mortgage marketplace, and the Zillow Offers home-buying business. Shares fell during the quarter in concert with the broader rotation out of technology-based stocks despite the company’s continued inflection in mortgages revenue, strong profitability in its core business, and a positive real estate outlook as Zillow builds out its iBuying ecosystem. In our view, Zillow is a leader in the large online real estate advertising market with substantial upside from mortgages and Offers, and we remain investors.”

Our calculations show that Zillow Group, Inc. (NASDAQ: Z) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Zillow Group, Inc. was in 83 hedge fund portfolios, compared to 69 funds in the third quarter. Zillow delivered a -44.51% 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.