Is It Too Late to Buy American Outdoor Brands (AOUT) Stock?

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Curreen Capital recently released its Q1 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 36.7% for the quarter, outperforming their benchmark, the S&P 500 Index which returned 6.17% in the same quarter. You should check out Curreen Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the Q1 2021 Investor Letter, the fund highlighted a few stocks and American Outdoor Brands Inc. (NASDAQ:AOUT) is one of them. American Outdoor Brands Inc. (NASDAQ:AOUT) produces and distributes firearms. In the last three months, American Outdoor Brands Inc. (NASDAQ:AOUT) stock gained 7%. Curreen Capital cared to mention American Outdoor Brands Inc. (NASDAQ:AOUT) in its investor letter, though they didn’t say why they really like the stock. All they said is this:

“American Outdoor builds brands in the firearms, hunting, and camping accessories markets. American Outdoor spun out of Smith & Wesson in August 2020. The business outpaces the competition, taking share in a large, fragmented and attractive market. Management reinvests free cash flow into growing the business.”

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Curreen Capital has been a long time American Outdoor Brands Inc. (NASDAQ:AOUT) bull. In January 2021, we shared Curreen Capital AOUT’s thesis in this article.

At the end of the third quarter of 2020, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10 from the second quarter of 2020 (see the chart here). As a result, a number of other hedge fund managers believe in AOUT’s growth potential. Our calculations showed that American Outdoor Brands Inc. (NASDAQ:AOUT) isn’t ranked among the 30 most popular stocks among hedge funds.

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.