Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 14.74% was recorded by the fund’s investor class for the Q1 of 2021, trailing the benchmark, Russell Microcap® Index, which leapt 23.89% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Wasatch Micro Cap Value Fund, in its Q1 2021 investor letter, mentioned Construction Partners, Inc. (NASDAQ: ROAD), and shared their insights on the company. Construction Partners, Inc. is a Dothan, Alabama-based construction company that currently has a $1.6 billion market capitalization. Since the beginning of the year, ROAD delivered an 8.07% return, extending its 12-month gains to 95.53%. As of May 10, 2021, the stock closed at $31.46 per share.
Here is what Wasatch Micro Cap Value Fund has to say about Construction Partners, Inc. in its Q1 2021 investor letter:
“The second company is Construction Partners, Inc. (ROAD), which does work on public and private infrastructure projects including highways, roads, bridges, airports, and commercial and residential sites. Construction Partners avoid Department of Transportation projects, which tend to have low margins. On a comparative basis, we believe Sterling is less richly valued than Construction Partners, but we continue to like both companies as attractive investments.”
Our calculations show that Construction Partners, Inc. (NASDAQ: ROAD) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Construction Partners, Inc. was in 9 hedge fund portfolios, compared to 11 funds in the third quarter. ROAD delivered a 10.46% 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.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.