Wasatch Small Cap Growth Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 10.9% for the quarter, outperforming its benchmark, the Russell 2000 Growth Index which returned 7.2% 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 Kornit Digital Ltd. (NASDAQ:KRNT) is one of them. Kornit Digital Ltd. (NASDAQ:KRNT) is an Israeli-American international manufacturing company. Year-to-date, Kornit Digital Ltd. (NASDAQ:KRNT) stock gained 158.4% and on December 24th it had a closing price of $88.45. Here is what Wasatch said:
"Among tech-related companies that aren’t classified as IT businesses, we favor Kornit Digital Ltd. (KRNT)—an Israeli-American company that appears in the industrials sector. Kornit produces proprietary digital-printing equipment for the textile industry. Shares of the company rose after the CEO said he expected sales growth to reaccelerate as governments lift coronavirusrelated restrictions on businesses. The CEO also noted that disruptions tied to the virus had hastened the shift to e-commerce and exposed inherent supply-chain challenges faced by traditional retail. We think Kornit is positioned to benefit as the growing need for flexible inventory management drives increased adoption of ondemand digital-production solutions.
Although Kornit operates in an old-line manufacturing segment, the company is benefiting from the implementation of a high-tech webbased system that simplifies textile printing. Kornit manages the design and manufacturing of the printers, but the company’s customers—including Amazon.com and Nike—operate the printers to meet specific needs for the quick turnaround of both large and small jobs. Even before the pandemic, Kornit had an annualized revenue growth rate of 18% for the three years ended in 2019. Currently, we believe the company and the market are still very early in their development."
In Q3 2020, the number of bullish hedge fund positions on Kornit Digital Ltd. (NASDAQ:KRNT) stock increased by about 100% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Kornit's growth potential. Our calculations showed that Kornit Digital Ltd. (NASDAQ:KRNT) 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
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