Baron Funds, an asset management company, released its “Baron Discovery Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund was down 22.66% in the second quarter, 3.41% below its benchmark index, the Russell 2000 Growth Index. The firm focuses more on secular growth stories instead of cyclical companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Baron Funds discussed stocks like Establishment Labs Holdings Inc. (NASDAQ:ESTA) in the second quarter investor letter. Headquartered in Alajuela, Costa Rica, Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology company. On September 12, 2022, Establishment Labs Holdings Inc. (NASDAQ:ESTA) stock closed at $66.99 per share. One-month return of Establishment Labs Holdings Inc. (NASDAQ:ESTA) was -0.46% and its shares lost 5.25% of their value over the last 52 weeks. Establishment Labs Holdings Inc. (NASDAQ:ESTA) has a market capitalization of $1.626 billion.
Here is what Baron Funds specifically said about Establishment Labs Holdings Inc. (NASDAQ:ESTA) in its Q2 2022 investor letter:
“Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology company that sells silicone gel-filled breast implants, branded as Motiva Implants, in more than 80 countries outside of the U.S. The company’s breast implants are made with a unique, proprietary smooth surface technology which minimizes the immune response and has had low rates of adverse events, particularly capsular contracture (squeezing of the implant by surrounding tissue) and rupture.
The company has been gaining market share in its existing geographies, but it has not yet received regulatory clearance in the U.S., which represents roughly half of the $1.5 billion breast implant market. Establishment has been running a pivotal U.S. trial to support FDA approval in the U.S. and recently announced two-year follow-up results at a medical meeting. The data revealed low complication rates, which should position the company to receive FDA approval over the next 12 to 18 months.
China represents a fast-growing market and Establishment expects to receive regulatory approval there in the coming months. In addition, the company is developing a minimally invasive breast implant called Motiva Mia, which can be implanted in a 15-minute procedure in an outpatient setting without general anesthesia. The company estimates an addressable market for Motiva Mia of 1.9 million new patients equating to a $3 billion to $5 billion incremental revenue opportunity. We think Motiva Mia will expand the company’s market opportunity materially, adding to the company’s long runway for growth.”
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Establishment Labs Holdings Inc. (NASDAQ:ESTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Establishment Labs Holdings Inc. (NASDAQ:ESTA) at the end of the second quarter which was 17 in the previous quarter.
We discussed Establishment Labs Holdings Inc. (NASDAQ:ESTA) in another article and shared stock picks of Efrem Kamen’s Pura Vida Investments. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
