Wasatch Advisors, an employee-owned investment manager, published its ‘Wasatch Small Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 4.48% was recorded by the fund for the Q3 of 2020, above its Russel 2000 Value benchmark that returned 2.56%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Wasatch Advisors, in their Q3 2020 Investor Letter said that they still believe in the abilities of Innospec Inc. (NASDAQ: IOSP) and that they maintained their position in the company even if it performed poorly. Innospec Inc. is a chemicals company that currently has a $2.4 billion market cap. For the past 3 months, Innospec Inc. delivered a 44.46% return and settled at $97.27 per share at the closing of January 15th.
Here is what Wasatch Advisors has to say about Innospec Inc. in their Investor Letter:
“Outside of consumer discretionary, Innospec, Inc. (IOSP) was a notable detractor. A provider of specialty chemicals, Innospec was hurt by the effects of slower growth on the transportation and energy industries, two of its key markets. We maintained the position, as we believe the company’s robust balance sheet and judicious use of capital should allow it to withstand a period of weaker economic conditions.”
Last December 2020, we published an article telling that Innospec Inc. (NASDAQ: IOSP) was in 21 hedge fund portfolios, its all time high statistics. IOSP delivered a 7.72% return YTD.
As of September 2020, Wasatch Advisors had a 306K share position in IOSP that amounted to $19 million. However, our calculations showed that Innospec Inc. (NASDAQ: IOSP) does not belong to 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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