Wasatch Advisors projects high percentage revenue for Open Lending Corp. (LPRO)

Wasatch Consultants, an employee-owned investment manager, has released its Q3 2020 Wasatch Micro Cap Value Fund letter to investors – a copy of which can be found downloaded here. The fund returned 11.62% for the third quarter of 2020, above its benchmark Russel Microcap which returned 3.69%. You can take a look at the top 10 holdings of the fund to get an overview of their best bets for 2021.

Wasatch Advisors, in its Q3 2020 letter to investors, said it believes in the capabilities of Open Lending Corporation (NASDAQ: LPRO) and that they are willing to keep him in their wallet in good times and bad, because he is a modern technology leader who arrived too early in his time. Open Lending Corporation is a financial services company that currently has a market capitalization of $ 4.8 billion. Over the past 3 months, LPRO has generated a return of 39.45% and stood at $ 38.15 per share at the close of January 15th.

Here is what Wasatch Advisors has to say about Open Lending Corporation in its letter to investors:

“Open Lending Corp. (LPRO), which specializes in loan analysis, risk-based pricing, modeling and automated decision technology for auto lenders, is another major contributor. Although classified in the financial sector, Open Lending is an example of our unique approach to financials, as the company does not incur any credit risk – a feature which is very attractive to us. Instead, the company offers a paid platform that is particularly effective in helping lenders assess the safety of providing financing to car buyers who are neither the best lower or lower tier borrowers. In turn, lenders have a better idea of ​​the interest rate to charge on a specific car loan. Because the Open Lending platform is so efficient, business has been pretty strong. Also, adding clients is not particularly capital or labor intensive. Thus, a high percentage of the income falls into the bottom line.

We had good timing in our purchase of Open Lending, which we did by investing in a Special Purpose Acquisition Company (SPAC). In the past, service providers were often frowned upon due to numerous quality issues. But they have improved considerably in recent years. When it was announced that a SAVS would be acquiring Open Lending, we had time to do our intensive investment research. As a result, we bought a significant position just before PSPC was converted into an operating company which is now Open Lending Corp. “

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In October 2020, we published a item saying that Open Lending Corporation (NASDAQ: LPRO) was featured in 20 hedge fund portfolios, its highest ever statistics. LPRO has generated a massive return of 264.29% over the past 12 months.

As of September 2020, Wasatch Advisors held a $ 6.4 million stake in LPRO which amounted to $ 164 million. However, our calculations showed that Open Lending Corporation (NASDAQ: LPRO) does not belong to 30 most popular stocks among hedge funds.

The 10 largest stocks among hedge funds have returned 216% since late 2014 and have outperformed S&P 500 ETFs by more than 121 percentage points. We know it sounds amazing. You rejected our articles on major hedge fund stocks mainly because other media provided you with biased information about poor performance of hedge funds. You could have doubled the size of your nest egg by investing in the best hedge fund stocks instead of stupid S&P 500 ETFs. Below you can watch our video on the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 stocks among hedge funds

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Disclosure: none. This article was originally published on Monkey initiate.

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Nancy Owens

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