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Where Food Comes From (WFCF) Has Risen 14% in Last One Year, Outperforms Market

Alex Smith
·3 mins read

If you are looking for the best ideas for your portfolio you may want to consider some of Artko Capital's top stock picks. Artko Capital, an investment management firm, is bearish on Where Food Comes From Inc. (NYSE:WFCF) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Where Food Comes From Inc. (NYSE:WFCF) stock. Where Food Comes From Inc. (NYSE:WFCF) is an independent, third-party food verification company.

On July 22, 2019, Artko Capital had released its Q2 2019 investor letter. The investment firm said that it exited from Where Food Comes From Inc. (NYSE:WFCF) stock in Q2 2019. Where Food Comes From Inc. (NYSE:WFCF) stock has posted a return of 14.0% in the trailing one year period, outperforming the S&P 500 Index which returned 11.7% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Where Food Comes From Inc. (NYSE:WFCF) stock has risen by 13.4%.

In Q2 2019 investor letter, Artko Capital said the fund posted a return of 15.1% in the second quarter of 2019, outperforming fund's benchmark the S&P 500 Index which returned 4.3% in the same period. Let’s take a look at comments made by Artko Capital about Where Food Comes From Inc. (NYSE:WFCF) stock in the Q2 2019 investor letter.

"We have exited our 2% Enhanced Portfolio investment in Where Food Comes From at $1.70-$1.80 price levels, resulting in a 5% loss on the position. WFCF was a slight disappointment for us in that in the year that we have held it, we just did not see a modicum of leadership from the management of the company to realize the potential to grow significantly into the company’s large addressable markets. While we commend the co-founders for their vision to launch this company and to grow it into a stable food industry mainstay, despite our encouragement we frustratingly did not see any attempts to capitalize on the growth potential of the company. Without the growth and the operating leverage upside, the company’s current market capitalization is probably too richly valued even for an unlikely strategic acquirer and we were happy to exit with a modest loss. We would be open to having another go at this investment with new leadership or strategic plan for high growth but for now we felt our capital was better allocated to the aforementioned new investment."

Aleksandar Mijatovic/Shutterstock.com

Our calculations showed that Where Food Comes From Inc. (NYSE:WFCF) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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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Disclosure: None. This article is originally published at Insider Monkey.