Wasatch Micro Cap Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 12.2% for the quarter, outperforming its benchmark, the Russell Microcap Index which returned 3.69% 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 Gan Ltd (NASDAQ:GAN) is one of them. Gan Ltd (NASDAQ:GAN) provides enterprise software-as-a-Service (SaaS) solutions for online casino gaming (iGaming) and online sports betting applications. In the last three months, Gan Ltd (NASDAQ:GAN) stock gained 22.6% and on December 24th it had a closing price of $18.53. Here is what Wasatch said:
"Another weak stock in the Fund was GAN Ltd. (GAN). Based in the U.K., the company provides Software-as-a-Service (SaaS) solutions for online casino gaming and online sports betting. Shares of GAN tumbled in August after the company announced that a large customer, FanDuel, had deployed its own proprietary digital wallet. The news—which meant that GAN would no longer be providing the digital wallet for FanDuel Sportsbook—disappointed investors, who had sent GAN’s stock soaring during the first half of 2020 on hopes that the return of professional sports during the pandemic would substantially boost online gambling. While the loss of the FanDuel project was disappointing, GAN remains profitable on a top-line basis and we believe it is well positioned to benefit from future growth in online gambling."
In Q3 2020, the number of bullish hedge fund positions on Gan Ltd (NASDAQ:GAN) stock decreased by about 36% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in Gan's growth potential. Our calculations showed that Gan Ltd (NASDAQ:GAN) 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.