Polen Capital Management, a value-driven, concentrated, long-term investment management firm, published its ‘Polen U.S. Small Company Growth’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A gross return of 29.14% was recorded by the fund for the Q4 of 2020, slightly below its Russell 2000 Growth benchmark that delivered a 29.61% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Polen Capital Management, in their Q4 2020 investor letter, mentioned Alarm.com Holdings, Inc. (NASDAQ: ALRM) and shared their insights on the company. Alarm.com Holdings, Inc. is a Fairfax, Virginia-based home automation company that currently has a $4.4 billion market capitalization. Since the beginning of the year, ALRM delivered a -14.04% return, while its 12-month gains are decently up by 141.66%. As of March 31, 2021, the stock closed at $86.38 per share.
Here is what Polen Capital Management has to say about Alarm.com Holdings, Inc. in their Q4 2020 investor letter:
“In terms of individual holdings, Alarm.com was a top contributor during the quarter, based on relative contribution to return. Alarm.com is a cloud-based home security and automation service provider. The stock increased significantly in the fourth quarter after a volatile third quarter due, in part, to investor concerns about a new partnership between ADT and Google. We believed these concerns were overblown, and the stock saw gains when the company reported strong results. The pandemic is becoming a tailwind for the business as people move away from cities or into larger homes, natural customer acquisition events for Alarm.com. We believe its value proposition and business model have the potential to translate into durable growth for the long term.”
Monkey Business Images/Shutterstock.com
Our calculations show that Alarm.com 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 fourth quarter of 2020, Alarm.com Holdings, Inc. was in 20 hedge fund portfolios, compared to 24 funds in the third quarter. ALRM delivered a -13.99% 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.
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 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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.
