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Artisan Small Cap Remains Hopeful for Ollie’s Bargain (OLLI) Despite Weak Performance

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Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 27.07% was recorded by its Investor Class: ARTSX, 27.14% by its Advisor Class: APDSX, and 27.15% by its Institutional Class: APHSX, in the fourth quarter of 2020, all below its Russell 2000 Growth Benchmark that delivered a 29.61% return and its Russel 2000 Index that was up by 31.37% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Small Cap Fund, in their Q4 2020 investor letter, mentioned Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) and emphasized their views on the company. Ollie's Bargain Outlet Holdings, Inc. is a Harrisburg, Pennsylvania-based discount store company that currently has a $5.8 billion market capitalization. Since the beginning of the year, OLLI delivered an 8.35% return, impressively extending its 12-month gains to 132.78%. As of March 17, 2021, the stock closed at $90.23 per share.

Here is what Artisan Small Cap Fund has to say about Ollie's Bargain Outlet Holdings, Inc. in their Q4 2020 investor letter:

"Among our bottom contributors in Q4 was Ollie’s Bargain Outlet. Discount retailer Ollie’s Bargain Outlet has benefited from its ability to keep stores open through the harshest of lockdowns, government stimulus checks and consumer lifestyle changes. However, shares have been pressured over the past couple of quarters as investors contemplate the very tough growth comparisons the company will face in 2021. We share these concerns and have pared our position size accordingly. We continue to believe Ollie’s unique operating model and significant new-store growth opportunity are compelling profit-cycle drivers longer term."

Copyright: stocking / 123RF Stock Photo

Our calculations show that Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) 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, Ollie's Bargain Outlet Holdings, Inc. was in 21 hedge fund portfolios, compared to 34 funds in the third quarter. OLLI delivered a 6.55% 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.

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Disclosure: None. This article is originally published at Insider Monkey.