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Here’s Why White Brook Capital Sold Yext Inc. (YEXT)

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·3 min read
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White Brook Capital, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 25.42% was delivered by the fund for the Q1 of 2021, ahead of its S&P 500 and S&P Midcap 400 benchmarks that delivered a 6.2% and 13.47% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

White Brook Capital, in their Q1 2021 investor letter, mentioned Yext, Inc. (NYSE: YEXT), and shared their insights on the company. Yext, Inc. is a New York-based technology company that currently has a $1.7 billion market capitalization. Since the beginning of the year, YEXT delivered a -9.22% return, while its 12-month gains are up by 10.79%. As of April 27, 2021, the stock closed at $14.36 per share.

Here is what White Brook Capital has to say about Yext, Inc. in their Q1 2021 investor letter:

"Yext, Inc was sold as my estimation of its future was recalibrated following another quarter of misexecution. When building a position in Yext, it was my belief that after missing a couple quarters, they were at a point where if they could execute, the upside would be very rewarding. Following another quarter of misexecution and less prime adoption of their product than expected, it seems more likely that the investment opportunity will be less robust than initially hoped."

Our calculations show that Yext, Inc. (NYSE: YEXT) 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, Yext, Inc. was in 11 hedge fund portfolios. YEXT delivered a -17.82% 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.

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Disclosure: None. This article is originally published at Insider Monkey.