Baron Discovery Fund recently released its second quarter commentary – a copy of it may downloaded here. In the second quarter of 2021, the Baron Discovery Fund returned 6.07% (institutional stocks). In comparison, the benchmark S&P 500 index rose 8.55% while the Russell 2000 Growth Index rose 3.92%. You should check out the Baron Discovery Fund’s top 5 stock picks that investors can buy now that could be the biggest winners of 2021.
In the investor letter for the 2nd quarter of 2021, the fund raised some stocks and Alkami Technology Inc. (NASDAQ:ALKT) Is one of them. Alkami Technology Inc. (NASDAQ:ALKT) is a software company. For the past three months, Alkami Technology Inc. (NASDAQ:ALKT) Share lost 8%. Here’s what the fund said:
“During the quarter, we invested in Alkami Technology Inc., a cloud-based digital banking platform that enables financial institutions (mostly credit unions) to incorporate and acquire new users, grow sales and significantly improve operational efficiency. The market opportunity is great with Alkami focusing on the top 2,000 of the 10,000 financial institutions in the US (excluding the megabanks). Many financial institutions today are using clunky, outdated legacy systems that are used to move to digital banking (brought about by COVID). As a result, we see financial institutions increasing their IT investments in these products significantly. We believe Alkami will be a major beneficiary of this shift as it stands out for its highly rated user experience, leading brand in credit unions, and platform flexibility (multi-tenant platform with a single code) Alkami is well positioned to drive sales in the to increase by 25% or more in the next few years, driven by a combination of expansion of existing customer relationships, acquisition of new customers (increased focus on banks in addition to credit unions), new product developments and selective acquisitions. We also believe that the long-term adjusted EBITDA margin target of 30% or more is achievable. “
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The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, outperforming the S&P 500 index ETFs by more than 126 percentage points. We know it sounds amazing. One of the main reasons you dismissed our articles on top hedge fund stocks was that other media fed you biased information about hedge fund 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 now watch our video on the top 5 hedge fund stocks. All of these stocks had positive returns in 2020.
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