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Is Fulgent Genetics (FLGT) A Smart Long-Term Buy?

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Old West Investment Management LLC, an investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. In the letter, the fund stated that their LP strategies returned an average of 65% and their SMA strategies returned an average of 66%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Old West Investment Management, in their Q4 2020 investor letter, mentioned Fulgent Genetics, Inc. (NASDAQ: FLGT) and emphasized their views on the company. Fulgent Genetics, Inc. is a Temple City, California-based genetic testing company that currently has a $2.8 billion market capitalization. Since the beginning of the year, FLGT delivered an 82.78% return, impressively extending its 12-month gains to 713.93%. As of March 26, 2021, the stock closed at $95.23 per share.

Here is what Old West Investment Management has to say about Fulgent Genetics, Inc. in their Q4 2020 investor letter:

"In our investor letter last July, Old West partner Chad Cook gave a bullish presentation of Fulgent Genetics (FLGT). We first purchased FLGT at $4 per share. At the time of the letter it was trading at $20 and it finished the year at $55. This Southern California based company is one of the fastest growers in the field of genetic testing, but their quick and nimble move into Covid testing has seen the company grow at 300% year over year."

10 Best Small-Cap Biotech Stocks Under $10 in 2021
10 Best Small-Cap Biotech Stocks Under $10 in 2021

Copyright: nexusplexus / 123RF Stock Photo

Our calculations show that Fulgent Genetics, Inc. (NASDAQ: FLGT) 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, Fulgent Genetics, Inc. was in 12 hedge fund portfolios, compared to 6 funds in the third quarter. FLGT delivered a decent 103.70% 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.