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Here’s Why Aspen Group (ASPU) Landed in Wasatch Micro Cap Value Fund’s Detractor List

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Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 14.74% was recorded by the fund’s investor class for the Q1 of 2021, trailing the benchmark, Russell Microcap® Index, which leapt 23.89% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Micro Cap Value Fund, in its Q1 2021 investor letter, mentioned Aspen Group, Inc. (NASDAQ: ASPU), and shared their insights on the company. Aspen Group, Inc. is a New York, New York-based education technology holding company that currently has a $130.2 million market capitalization. Since the beginning of the year, ASPU delivered a -53.10% return, while its 12-month gains are down by -31.76%. As of May 10, 2021, the stock closed at $5.22 per share.

Here is what Wasatch Micro Cap Value Fund has to say about Aspen Group, Inc. in its Q1 2021 investor letter:

"Another detractor was Aspen Group, Inc. (ASPU), a Colorado-based operator of certificate programs and associate’s, bachelor’s, master’s and doctor’s degree programs. The stock was down on investor fears regarding net losses associated with increased expenses for marketing, teachers and admissions staff ahead of new enrollments. Nevertheless, the company has been able to grow revenues at over 30% per year. And Aspen is an example of a business we like for a changing investment environment. We’re especially impressed with the company’s nursing programs, which we consider reasonably priced with excellent job-placement track records. Moreover, we don’t think Aspen’s success is overly dependent on the economy, Federal Reserve policies or government spending. (Current and future holdings are subject to risk.)"

Education
Education

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Our calculations show that Aspen Group, Inc. (NASDAQ: ASPU) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Aspen Group, Inc. was in 9 hedge fund portfolios. ASPU delivered a -47.59% return in the past 3 months.

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.