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Should You Invest in Alphabet Inc. (GOOG)?

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·3 min read
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Ensemble Capital, an investment management firm, published its “Ensemble Fund” first quarter 2021 investor letter – a copy of which can be seen here. A return of 3.80% was delivered by the fund in the Q1 of 2021, below its S&P 500 benchmark that delivered a 6.17% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Ensemble Capital, in their Q1 2021 investor letter, mentioned Alphabet Inc. (NASDAQ: GOOG) and shared their insights on the company. Alphabet Inc. is a Mountain View, California-based multinational conglomerate that currently has a $1.5 trillion market capitalization. Since the beginning of the year, GOOG delivered a 30.90% return, extending its 12-month to 81.54%. As of April 21, 2021, the stock closed at $2,293.29 per share.

Here is what Ensemble Capital has to say about Alphabet Inc. in their Q1 2021 investor letter:

"Notable contributors to the Fund’s returns this quarter (included) Alphabet. Alphabet (Google) (6.2% weight in the Fund) handily outperformed its FAANG (Facebook, Apple, Amazon, Netflix, Google) peers in the first quarter, thanks to great fourth quarter and full-year results across the board that positively surprised the market. In particular, the non-Search businesses, such as Cloud and YouTube delivered such strong performance that investors realized they might have underestimated their longer-term revenue and profitability profiles."

d8nn / Shutterstock.com

Our calculations show that Alphabet Inc. (NASDAQ: GOOG) ranks 6th in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Alphabet Inc. was in 157 hedge fund portfolios, compared to 150 funds in the third quarter. GOOG delivered a 21.54% 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.