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Is APi Group Corp. (APG) A Smart Long-Term Buy?

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·3 min read
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Bernzott Capital Advisors, an investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 24.41% was recorded by the fund in the fourth quarter of 2020, below its R2000V and R2500V benchmarks that delivered a 33.36% and 28.51% return respectively in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Bernzott Capital Advisors, in their Q4 2020 investor letter, mentioned APi Group Corporation (NYSE: APG) and emphasized their views on the company. APi Group Corporation is a New Brighton, Minnesota-based safety, specialty, and industrial services provider that currently has a $3.8 billion market capitalization. Since the beginning of the year, APG delivered a 5.95% return, impressively extending its 12-month gains to 172.77%. As of March 23, 2021, the stock closed at $19.23 per share.

Here is what Bernzott Capital Advisors has to say about APi Group Corporation in their Q4 2020 investor letter:

"APi Group (APG): A business services provider of safety, specialty and industrial services primarily in North America. The company was brought public via a SPAC in 2019 under the leadership of Martin Franklin and James Lillie, formerly of Jarden. Working alongside CEO Russ Becker and CFO Tom Lydon, we expect them to expand profit margins from 10-12+% and increase the percentage of total revenue that is recurring from 40-50+% over the next several years. The board members from Jarden also bring tremendous capital markets experience and we expect APG to continue to consolidate a highly fragmented safety industry."

Copyright: kzenon / 123RF Stock Photo

Our calculations show that APi Group Corporation (NYSE: APG) 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, APi Group Corporation was in 31 hedge fund portfolios, compared to 28 funds in the third quarter. APG delivered a 7.37% 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.