Top 5 Stocks to Buy According to Charles Montanaro’s Hedge Fund

Below is the list of 5 stocks to buy according to Charles Montanaro’s hedge fund. For a detailed discussion about Charles Montanaro’s investment philosophy and portfolio management strategies please see Top 10 Stocks to Buy According to Charles Montanaro’s Hedge Fund.

5. Paylocity Holding Corporation (NASDAQ:PCTY)

Montanaro Asset Management’s Stake Value: $12.6 million

Percentage of Montanaro Asset Management’s 13F Portfolio: 1.52%

Number of Hedge Fund Holders: 27

In the third quarter investor letter, Alger, an investment management firm, mentioned a few stocks including Paylocity. Here is what Alger stated:

“Paylocity Holding Corp. was among the top contributors to performance. Paylocity is a leading software-as-a-service company that provides cloud-based payroll and human capital management in underserved small to mid-size markets. The majority of new sales activity is with employers that have 50 to 500 employees. Paylocity’s earnings results released in August were positive with improved demand for its products. Sales momentum was also strong with a 28% year-over-year increase for the second quarter, which exceeded consensus expectations. In another positive development, the amount of time required to establish initial meetings, receive decisions from potential clients and complete implementations has returned to normal following previous challenges resulting from the pandemic. The company also reported that the number of employees on the platform has largely recovered, although not yet to 100% of the level prior to COVID-19.”