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Wasatch Micro Cap Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 31.3% for the quarter, underperforming its benchmark, the Russell Microcap Index which returned 31.4% 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 Q4 2020 Investor Letter, Wasatch highlighted a few stocks and Limelight Networks Inc. (NASDAQ:LLNW) is one of them. Limelight Networks Inc. (NASDAQ:LLNW) operates content delivery network for internet distribution of video, music, games, and download. In the last three months, Limelight Networks Inc. (NASDAQ:LLNW) stock lost 26.1% and on February 24th it had a closing price of $3.42. Here is what Wasatch said:
"The greatest detractor from Fund performance was Limelight Networks, Inc. (LLNW). The company’s content-delivery network enables businesses to deliver digital content across internet, mobile and social channels. Limelight’s stock price had surged earlier in the year as billions of people around the globe streamed online media while sheltering in place. The debut of several new overthe-top streaming services also boosted demand for the company’s capabilities. Believing those drivers to be temporary, we significantly reduced our position in Limelight during second and third quarters. With competition heating up and the company’s growth likely to decelerate, we liquidated the Fund’s remaining shares during the fourth quarter."
In Q3 2020, the number of bullish hedge fund positions on Limelight Networks Inc. (NASDAQ:LLNW) stock decreased by about 29% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in LLNW's growth potential. Our calculations showed that Limelight Networks Inc. (NASDAQ:LLNW) isn't ranked among the 30 most popular stocks among hedge funds.
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.