Alger, an investment management firm, published its ‘Alger Small Cap Focus Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. In the letter, the fund highlighted their largest portfolio sector weightings, which is in the Health Care and Information Technology sector, and their comments on notable companies. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Alger Small Cap Focus Fund, in their Q4 2020 investor letter, mentioned CareDx, Inc (NASDAQ: CDNA) and emphasized their views on the company. CareDx, Inc is a California-based molecular diagnostics health care company that currently has a $3.4 billion market capitalization. Since the beginning of the year, CDNA delivered a -7.63% return, but its 12-month gains are impressively up by 235.44%. As of March 11, 2021, the stock closed at $69.35 per share.
Here is what Alger Small Cap Focus Fund has to say about CareDx, Inc in their Q4 2020 investor letter:
“CareDx provides high-value and differentiated diagnostic surveillance products for patients receiving organ or stem cell transplants. CareDx’s diagnostic tests can increase the chances of successful transplants by facilitating a better match between donors and recipients of stem cells and organs. In post-transplant diagnostics, CareDx offers tests for monitoring signs of rejection in kidney and heart transplant patients. Shares of CareDx outperformed due to stronger-than-expected third quarter revenues and earnings and a sizable increase in reimbursement for its heart transplant surveillance testing. Despite potential Covid-19 impacts to its business, CareDx also continues to experience strong adoption of its AlloSure test for kidney transplant patients.
In addition, during November, CareDx recieved final Medicare coverage and reimbursement for its HeartCare test (which combines its existing AlloMap Heart test with its AlloSure Heart test to make a more accurate prediction of patients at risk for heart transplant organ rejection). Medicare increased CareDx’s reimbursement by 85% from AlloMapHeart test alone to its new HeartCare test offering, bringing the total reimbursement to $5.993 per test. This development has better positioned CareDx’s to increase its average price per test and generate strong sales volume growth of the test.”
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Our calculations show that CareDx, Inc (NASDAQ: CDNA) 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, CareDx, Inc. was in 20 hedge fund portfolios, compared to 25 funds in the third quarter. CDNA delivered a -3.37% 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.
