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Is Analog Devices (ADI) A Smart Long-Term Buy?

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Weitz Investment Management, an investment management firm, published its “Value Fund” fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 10.19% was recorded by the fund’s Institutional Class in the fourth quarter of 2020, outperforming both its S&P 500 benchmark that delivered a 12.15% return and its Morningstar Large-Cap Blend category that had a gain of 12.78% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Weitz Investment Management, in their Q4 2020 investor letter, mentioned Analog Devices, Inc. (NASDAQ: ADI) and emphasized their views on the company. Analog Devices, Inc. is a Norwood, Massachusetts-based semiconductor company that currently has a $57.4 billion market capitalization. Since the beginning of the year, ADI delivered a 5.50% return, impressively extending its 12-month gains to 85.34%. As of March 30, 2021, the stock closed at $152.61 per share.

Here is what Weitz Investment Management has to say about Analog Devices, Inc. in their Q4 2020 investor letter:

" Analog Devices benefited from several global, long-wave trends such as automation, electric vehicles and the 5G network build-out. The company’s quarterly sales into the auto, industrial and communications sectors exceeded expectations, giving the stock a lift."

Our calculations show that Analog Devices, Inc. (NASDAQ: ADI) 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, Analog Devices, Inc. was in 58 hedge fund portfolios, compared to 52 funds in the third quarter. ADI delivered a 6.62% 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.