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‘SiTime is A Technology Leader, Ahead of its Time’ Says Wasatch Advisors

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Jose Karlo Mari Tottoc
·3 min read
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Wasatch Advisors, an employee-owned investment manager, published its ‘Wasatch Micro Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.62% was recorded by the fund for the Q3 of 2020, above its Russel Microcap benchmark that returned 3.69%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Wasatch Advisors, in their Q3 2020 Investor Letter said that they believe in the capabilities of SiTime Corporation (NASDAQ: SITM) and that they are willing to keep it inside their portfolio through good times and bad times since it is a modern technology leader that arrived too early on its time. SiTime Corporation develops silicon-based timing solutions, and currently has a $2.3 billion market cap. For the past 3 months, SiTime Corporation delivered a 55% return and settled at $136.50 per share at the closing of January 15th.

Here is what Wasatch Advisors has to say about SiTime Corporation in their Investor Letter:

"SiTime Corp. (SITM), a developer of silicon based timing components, was the top contributor to Fund performance during the third quarter as the company made a special announcement to raise its earnings guidance. SiTime manufactures oscillators, clock generators and embedded resonators used for ethernet switches, computing devices, graphics cards, disk drives, mobile phones and subscriber-identity cards. With time-keeping devices transitioning from quartz to silicon, which improves accuracy, we think the company is particularly well-positioned as a technology leader that’s years ahead of the competition. As we’ve communicated before, SiTime is an almost ideal example of a holding we like for the Fund. The company ranks exceedingly well in our assessment of its balance sheet, business model, management team, market share and growth potential. Moreover, we want to own SiTime in good environments and in bad ones too."

Sergey Nivens/Shutterstock.com

Last December 2020, we published an article telling that SiTime Corporation (NASDAQ: SITM) was in 6 hedge fund portfolios. Its all time high statistics is 12. SITM delivered a tremendous 446.71% return in the past 12 months.

As of September 2020, Wasatch Advisors had a 123K share position in SITM that amounted to $10 million. However, our calculations showed that SiTime Corporation (NASDAQ: SITM) does not belong to 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.