Should You Sell Your Cognyte Software Ltd. (CGNT) Position?

Bernzott Capital Advisors, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 10.27% was recorded by the fund for the Q1 of 2021, below the Russell 2000 Value and Russell 2500 Value Index that delivered a 21.17% and 16.83% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Bernzott Capital Advisors, in their Q1 2021 investor letter, mentioned Cognyte Software Ltd. (NASDAQ: CGNT), and shared their insights on the company. Cognyte Software Ltd. is an Israel-based software company that currently has a $1.5 billion market capitalization. Since the beginning of the year, CGNT delivered a -9.97% return, while its 12-month gains are down by -24.13%. As of May 05, 2021, the stock closed at $23.93 per share.

Here is what Bernzott Capital Advisors has to say about Cognyte Software Ltd. in their Q1 2021 investor letter:

“Cognyte Software (CGNT): The company is a cyber intelligence company spun-out of portfolio holding, Verint Systems, on February 1, 2021. We elected to exit the position.”

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Our calculations show that Cognyte Software Ltd. (NASDAQ: CGNT) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. CGNT delivered a -9.63% 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.