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 Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) and emphasized their views on the company. Ollie’s Bargain Outlet Holdings, Inc. is a Pennsylvania-based discount store company that currently has a $6.2 billion market capitalization. Since the beginning of the year, OLLI delivered a 15.30% return, impressively extending its 12-month gains to 144.06%. As of March 15, 2021, the stock closed at $94.28 per share.
Here is what Alger Weatherbie Specialized Growth Fund has to say about Ollie’s Bargain Outlet Holdings, Inc. in their Q4 2020 investor letter:
“Ollie’s Bargain Outlet is a retailer of brand name products with a particular focus on closeout merchandise. The company offers food products, houseware, books and stationery, bed and bath products, floor coverings, electronics, and toys, as well as other products including hardware, personal health care, candy, clothing, sporting, pet, lawn and garden items. A strong performer across the year, Ollie’s was one of the traditional brick and mortar retailers to benefit during the Covid-19 pandemic because its consumer packaged goods and home cleaning products in particular drove an acceleration in store visits for essential items. The “Ollie’s Army” brand loyalty program also continued to expand with new sign-ups. During the fourth quarter the stock gave back some of its gains from earlier in the year due primarily to sell side concerns regarding the company’s ability in 2021to match this year’s strength in same store sales, as well as concerns about Ollie’s ability to secure enough closeout merchandise to meet strong demand. The Weatherbie team believes the industry backdrop remains strong and Ollie’s remains well positioned for the long term.”
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Our calculations show that Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) 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, Ollie’s Bargain Outlet Holdings, Inc. was in 21 hedge fund portfolios, compared to 34 funds in the third quarter. OLLI delivered an 18.89% 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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