Artisan Partners Limited Partnership, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 16.82% was recorded by its Investor Class: ARTMX, 16.87% by its Advisor Class: APDMX, and 16.89% by its Institutional Class: APHMX, in the fourth quarter of 2020, all below its Russell Midcap Growth Benchmark that delivered a 19.02% return and its Russel Midcap Index that was up by 19.91% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Artisan Mid Cap Fund, in their Q4 2020 investor letter, mentioned DexCom, Inc. (NASDAQ: DXCM) and emphasized their views on the company. DexCom, Inc. is a California-based continuous glucose manufacturing company that currently has a $33 billion market capitalization. Since the beginning of the year, DXCM delivered a -6.82% return, but its 12-month gains are still decently up by 80.21%. As of March 16, 2021, the stock closed at $354.65 per share.
Here is what Artisan Mid Cap Fund has to say about DexCom, Inc. in their Q4 2020 investor letter:
“Among our bottom individual contributors was DexCom. Shares of DexCom have fallen primarily on rising competitive concerns from Abbott Laboratories, which is expected to launch the third generation of its Libre continuous glucose monitoring (CGM) sensor in 2021. These fears were compounded by a slight six-month delay in the launch of DexCom’s new G7 CGM product (now second half of 2021). We acknowledge Abbott’s competitiveness but believe DexCom still has the premier CGM product and the total addressable market has plenty of growth ahead for two main players. We have also been encouraged by DexCom’s ability to penetrate the pharmacy channel. While this channel brings lower prices, it’s far more convenient for patients to access, and it lowers operating expenses for the company. With shares down over 20% from their highs, we added modestly to our position.”
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Our calculations show that DexCom, Inc. (NASDAQ: DXCM) 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, DexCom, Inc. was in 52 hedge fund portfolios, compared to 58 funds in the third quarter. DXCM delivered a -2.05% 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.
