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FAM Funds: “We Bought Descartes Systems (DSGX) at A Reasonable Price”

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Jose Karlo Mari Tottoc
·3 min read
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FAM Funds, an investment management firm, published its ‘FAM Small Cap Fund’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.10% was recorded by the fund for the year end 2020, underperforming its Russell 2000 benchmark that returned 19.9%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

FAM Funds, in their Q4 2020 Investor Letter said that they acquired a position in The Descartes Systems Group Inc (NASDAQ: DSGX), and they continue to hope for the best in the company. The Descartes Systems Group Inc is a technology solutions provider that currently has a $5.2 billion market cap. For the past 3 months, DSGX delivered a 15.36% return and settled at $61.91 per share at the closing of January 28th.

Here is what FAM Funds has to say about The Descartes Systems Group Inc in their investor letter:

"As the market retreated, our first new idea was Descartes Systems (DSGX). DSGX offers a variety of software products for logistics companies across the globe for tasks like tracking packages, routing trucks, and complying with a litany of customs regulations. We studied DSGX for a few years, but this was the first time the stock price was reasonably priced in our view. Since our purchase, DSGX has reported solid results. While revenues from some clients (such as airlines that carry freight below passengers) dropped, others (like retailers needing software to implement more home deliveries) stepped up their purchases."

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Oleksiy Mark/Shutterstock.com

Last December 2020, we published an article telling that The Descartes Systems Group Inc (NASDAQ: DSGX) was in 12 hedge fund portfolios. Its all time high statistics is 14. DSGX delivered a decent 38.41% return in the past 12 months.

Our calculations show that The Descartes Systems Group Inc (NASDAQ: DSGX) does not belong in our list of 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

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