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CyberArk Software (CYBR) is Wasatch Core Growth Fund’s Q1 Top Detractor

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Wasatch Global Investors, an investment management firm, published its “Wasatch Core Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 5.59% was recorded by the fund for the Q1 of 2021, trailing the benchmark, Russell 2000 Index, that increased 12.70% and the Russell 2000 Growth Index that rose 4.88% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Global Investors, in its Q1 2021 investor letter, mentioned CyberArk Software Ltd. (NASDAQ: CYBR), and shared their insights on the company. CyberArk Software Ltd. is a Newton, Massachusetts-based information security company that currently has a $4.7 billion market capitalization. Since the beginning of the year, CYBR delivered a -25.60% return, while its 12-month gains are up by 4.76%. As of May 07, 2021, the stock closed at $120.23 per share.

Here is what Wasatch Global Investors has to say about CyberArk Software Ltd. in its Q1 2021 investor letter:

"The largest detractor from Fund performance for the first quarter was CyberArk Software Ltd. (CYBR), a provider of security solutions that protect privileged accounts from cyber attacks. The stock-price decline seemed to be part of a broad correction among fast-growing technology names and wasn’t due to any fundamental issues at CyberArk. The company is in the process of transitioning the majority of its business from onpremises installation to software-as-a-service in which customers pay by subscription for the protection they need. We think the transition will be completed successfully and will likely result in a higher price for the stock because revenues and earnings will be more predictable under a subscription-based business model."

Copyright: daviles / 123RF Stock Photo

Our calculations show that CyberArk Software Ltd. (NASDAQ: CYBR) 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, CyberArk Software Ltd. was in 27 hedge fund portfolios compared to 25 funds in the third quarter. CYBR delivered a -25.72% 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.