Baron Funds, an asset management firm, published its “Baron Health Care Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.58% was delivered by the fund’s institutional shares for the Q1 of 2021, below both its S&P 500 and Russell 3000 Health Care benchmarks that delivered a 6.17% and 2.14% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron Health Care Fund, in their Q1 2021 investor letter, mentioned Beam Therapeutics Inc. (NASDAQ: BEAM), and shared their insights on the company. Beam Therapeutics Inc. is a Massachusetts, United States-based biotechnology company that currently has a $4.8 billion market capitalization. Since the beginning of the year, BEAM delivered a -4.34% return, while its 12-month gains are up by 407.80%. As of April 29, 2021, the stock closed at $78.10 per share.
Here is what Baron Health Care Fund has to say about Beam Therapeutics Inc. in their Q1 2021 investor letter:
“Beam Therapeutics Inc. is a biotechnology company pioneering a novel technology called base editing, which allows for individual base pairs (the letters of DNA) to be modified. Shares fell along with other biotechnology stocks driven by a sudden rise in treasury yields. Early stage biotechnology stocks are particularly sensitive to interest rates because their cash flows are further in the future. We believe we are entering into a phase of significant advancement for the gene editing field that will eventually lead to curative therapies, and we think Beam has a unique platform technology.”
Our calculations show that Beam Therapeutics Inc. (NASDAQ: BEAM) 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, Beam Therapeutics Inc. was in 14 hedge fund portfolios, compared to 7 funds in the third quarter. BEAM delivered a -19.01% 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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Disclosure: None. This article is originally published at Insider Monkey.
