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Is SP Plus Corp (SP) a Smart Long-term Buy?

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Alex Smith
·3 min read
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Bernzott Capital Advisors recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 8.61% (net) for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 2.56% in the same quarter. You should check out Bernzott Capital Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Bernzott Capital Advisors highlighted a few stocks and SP Plus Corp (NASDAQ:SP) is one of them. SP Plus Corp (NASDAQ:SP) is a transport company. Year-to-date, SP Plus Corp (NASDAQ:SP) stock lost 32.4% and on December 14th it had a closing price of $38.70. Here is what Bernzott Capital Advisors said:

"SP Plus (SP): SP Plus continues to struggle with the pandemic. The company operates in industries that have been greatly affected by the events of 2020 including professional parking management, ground transportation, remote baggage check-in and handling, and large event logistics. The company continues to generate free cash flow and it continues to invest in technology which should give it a competitive advantage over competitors with less scale. The company said it believes the greatest impact of this pandemic-related crisis on the business was felt in the second quarter, with expected progressive improvement from that low point during the second half of the year. The strategies that contributed to that momentum should continue on the other side of the pandemic."

Kotsovolos Panagiotis/Shutterstock.com

In Q3 2020, the number of bullish hedge fund positions on SP Plus Corp (NASDAQ:SP) stock decreased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in SP's growth potential. Our calculations showed that SP Plus Corp (NASDAQ:SP) 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.