Want to Buy Snowflake (SNOW) Stock? Here’s What You Need to Know

Baron Opportunity Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Opportunity Fund returned 17.92% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.93%, while the Russell 3000 Growth Index was up 12.86%. You should check out Baron’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Baron Opportunity Fund highlighted a few stocks and Snowflake Inc. (NYSE:SNOW) is one of them. Snowflake Inc. (NYSE:SNOW) is a cloud-based data-warehousing company. In the last one month, Snowflake Inc. (NYSE:SNOW) stock gained 59% and on December 10th it had a closing price of $373.28. Here is what Baron Opportunity Fund said:

“Snowflake Inc. provides a data-warehouse platform for large-scale data analytics and storage. The company is leveraging its cloud-native architecture to offer low-cost storage, scalability, and ease of use that are lacking in many competitive solutions. We participated in the company’s September IPO and the stock has performed well in the after-market. We believe Snowflake has a significant growth runway within its large addressable market given its differentiated technology, platform approach, and highly experienced management team. Snowflake’s CEO Frank Slootman and CFO Michael Scarpelli have successfully partnered at several public technology companies, including ServiceNow, a long-term Fund investment.”

Last month, we published an article revealing that Snowflake Inc. (NYSE:SNOW) was one of the top 5 stocks Warren Buffett just bought.

At the end of the third quarter, a total of 59 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 59 from the previous (see the chart here), so a number of other hedge fund managers believe in Snowflake’s growth potential. Our calculations showed that Snowflake Inc. (NYSE:SNOW) isn’t ranked among 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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Disclosure: None. This article is originally published at Insider Monkey.