U.S. markets close in 1 hour 37 minutes
  • S&P 500

    3,836.90
    -33.39 (-0.86%)
     
  • Dow 30

    31,409.45
    +17.93 (+0.06%)
     
  • Nasdaq

    13,042.28
    -316.51 (-2.37%)
     
  • Russell 2000

    2,220.18
    -11.32 (-0.51%)
     
  • Crude Oil

    61.29
    +1.54 (+2.58%)
     
  • Gold

    1,715.60
    -18.00 (-1.04%)
     
  • Silver

    26.32
    -0.56 (-2.10%)
     
  • EUR/USD

    1.2071
    -0.0016 (-0.13%)
     
  • 10-Yr Bond

    1.4670
    +0.0520 (+3.67%)
     
  • GBP/USD

    1.3961
    +0.0004 (+0.03%)
     
  • USD/JPY

    107.0030
    +0.2930 (+0.27%)
     
  • BTC-USD

    50,502.34
    +2,681.16 (+5.61%)
     
  • CMC Crypto 200

    1,011.20
    +23.10 (+2.34%)
     
  • FTSE 100

    6,675.47
    +61.72 (+0.93%)
     
  • Nikkei 225

    29,559.10
    +150.93 (+0.51%)
     

If You Own DocuSign (DOCU) Stock, Should You Sell It Now?

  • Oops!
    Something went wrong.
    Please try again later.
Alex Smith
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Wasatch Core Growth Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 6.61% for the quarter, outperforming its benchmark, the Russell 2000 Index which returned 4.93% in the same quarter. You should check out Wasatch's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Wasatch highlighted a few stocks and DocuSign Inc. (NASDAQ:DOCU) is one of them. DocuSign Inc. (NASDAQ:DOCU) provides electronic signature solutions. Year-to-date, DocuSign Inc. (NASDAQ:DOCU) stock gained 239.5% and on December 22nd it had a closing price of $251.60. Here is what Wasatch said:

"We recently liquidated our shares of DocuSign, Inc. (DOCU), which offers e-signature software that enables businesses and individuals to digitally prepare and execute agreements. Utilization of the software spiked during the pandemic and the stock was an excellent performer, propelling the company’s market capitalization to over $40 billion. While we still like the company, the valuation set a higher bar for the future. With the proceeds of our DocuSign sale, we rotated into what we viewed as more reasonably priced names."

16 Most Technologically Advanced Countries in the World in 2017
16 Most Technologically Advanced Countries in the World in 2017

Stasique/Shutterstock.com

In Q3 2020, the number of bullish hedge fund positions on DocuSign Inc. (NASDAQ:DOCU) stock increased by about 9% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in DocuSign's growth potential. Our calculations showed that DocuSign Inc. (NASDAQ:DOCU) 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.