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Here’s Why Canada Goose (GOOS) Settled in Alger Weatherbie’s Top Detractor List

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Alger, an investment management firm, published its ‘Alger Weatherbie Specialized Growth Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. In the letter, the fund highlighted their largest portfolio sector weightings, which is in Information Technology and Health Care sector, with their comments on notable companies. The Financials sector together with the Health Care sector is where they achieved the largest chunk of their returns. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Alger Weatherbie Specialized Growth Fund, in their Q4 2020 investor letter, mentioned Canada Goose Holdings Inc. (NYSE: GOOS) and emphasized their views on the company. Canada Goose Holdings Inc. is a Toronto, Canada-based clothing company that currently has a $4.8 billion market capitalization. Since the beginning of the year, GOOS delivered a 46.86% return, impressively extending its 12-month gains to 165.78%. As of March 15, 2021, the stock closed at $43.72 per share.

Here is what Alger Weatherbie Specialized Growth Fund has to say about Canada Goose Holdings Inc. in their Q4 2020 investor letter:

"Canada Goose designs, manufactures and sells premium outerwear, primarily jackets. The company has a strong brand known for its authentic heritage, high quality and superior warmth. We believe the risk to reward profile is favorable as the company executes on expanding its direct-to-consumer segment, which includes its wholly owned retail stores and ecommerce presence in multiple countries. Shares of Canada Goose underperformed during the fourth quarter in response to Covid-19 headwinds, including restrictions on store operations and decreased foot traffic. Unseasonably warm weather in certain markets and some sell-side reports suggesting brand momentum may have faded somewhat based on both website traffic and social media statistics also weighed upon the performance of the shares."

Our calculations show that Canada Goose Holdings Inc. (NYSE: GOOS) 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, Canada Goose Holdings Inc. was in 19 hedge fund portfolios, compared to 21 funds in the third quarter. GOOS delivered a 38.05% 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.