Here’s Why Moderna (MRNA) Underperformed in the Third Quarter

Baron Funds, an investment management company, released its “Baron Health Care Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 6.01% compared to a 4.72% decline for the Russell 3000 Health Care Index. The fund’s underperformance in the quarter was attributed to poor stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Moderna, Inc. (NASDAQ:MRNA) in its Q3 2022 investor letter. Headquartered in Cambridge, Massachusetts, Moderna, Inc. (NASDAQ:MRNA) is a  biotechnology company. On October 14, 2022, Moderna, Inc. (NASDAQ:MRNA) stock closed at $134.00 per share. One-month return of Moderna, Inc. (NASDAQ:MRNA) was 4.77% and its shares lost 59.98% of their value over the last 52 weeks. Moderna, Inc. (NASDAQ:MRNA) has a market capitalization of $52.421 billion.

Here is what Baron Funds specifically said about Moderna, Inc. (NASDAQ:MRNA) in its Q3 2022 investor letter:

“Within biotechnology, underperformance of Moderna, Inc. (NASDAQ:MRNA) and lower exposure to this better performing sub-industry weighed the most on relative performance. Shares of Moderna, a leader in the emerging field of mRNA-based vaccines and therapeutics, declined due to increasing uncertainty around what a booster market could look like as COVID shifts away from pandemic status and becomes an increasingly commercial market rather than government funded.”

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Moderna, Inc. (NASDAQ:MRNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Moderna, Inc. (NASDAQ:MRNA) at the end of the second quarter which was 41 in the previous quarter.

We discussed Moderna, Inc. (NASDAQ:MRNA) in another article and shared the list of defensive stock picks in Druckenmiller’s portfolio. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.