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Is Cornerstone OnDemand (CSOD) a Smart Long-term Buy?

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Alex Smith
·3 min read
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Bernzott Capital Advisors recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 8.61% (net) for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 2.56% in the same quarter. You should check out Bernzott Capital Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Bernzott Capital Advisors highlighted a few stocks and Cornerstone OnDemand Inc (NASDAQ:CSOD) is one of them. Cornerstone OnDemand Inc (NASDAQ:CSOD) is a software company. Year-to-date, Cornerstone OnDemand Inc (NASDAQ:CSOD) stock lost 24.1% and on December 14th it had a closing price of $44.46. Here is what Bernzott Capital Advisors said:

"Cornerstone OnDemand (CSOD): Posted better than expected Q2 results. While COVID-19 is lengthening the sales cycle, CSOD is focused on things within its control, such as the successful integration of Saba. CSOD now expects to exit 2020 with $65mm in run-rate synergies vs. initial expectations for $35mm within 24 months. CSOD plans to drive efficient growth by leveraging analytics to exclusively focus on highest probability win of success. Net debt/EBITDA is elevated at 4.3X after the acquisition, but CSOD has ample liquidity with $136mm in cash and $50mm available on its revolver."

Roman Samborskyi/Shutterstock.com

In Q2 2020, the number of bullish hedge fund positions on Cornerstone OnDemand Inc (NASDAQ:CSOD) stock increased by about 29% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Cornerstone's growth potential. Our calculations showed that Cornerstone OnDemand Inc (NASDAQ:CSOD) isn't ranked among 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

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.