FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
FAM Funds, in their Q4 2020 Investor Letter said that they acquired a position in SPS Commerce, Inc. (NASDAQ: SPSC) because of its attractive valuation. SPS Commerce, Inc. is a software company that currently has a $3.5 billion market cap. For the past 3 months, SPSC delivered a 17.91% return and settled at $102.87 per share at the closing of January 28th.
Here is what FAM Funds has to say about SPS Commerce, Inc. in their investor letter:
“In mid-March, we began buying a position in SPS Commerce (SPSC), the dominant player in supply chain software. Thousands of suppliers worldwide pay SPSC a fee to communicate with retailers like Costco, Fastenal, and Walgreens. In our view, SPSC is another example of a dynamic, high-growth business that rarely trades at an attractive valuation level. Since our purchases, company earnings have grown nicely.”
Last December 2020, we published an article telling that SPS Commerce, Inc. (NASDAQ: SPSC) was in 14 hedge fund portfolios. Its all time high statistics is 24. SPSC delivered a decent 77.23% return in the past 12 months.
Our calculations show that SPS Commerce, Inc. (NASDAQ: SPSC) does not belong in our list of 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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