Baron Funds, an investment management company, released its “Baron Discovery Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 11.20% in the first quarter compared to the Russell 2000 Growth Index’s return of 6.07%. The strong performance of holdings in the Information Technology (IT), Industrials, and Consumer Discretionary sectors and the Fund’s higher exposure to the top-performing IT sector led the fund to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund highlighted stocks like Revance Therapeutics, Inc. (NASDAQ:RVNC) in the first quarter 2023 investor letter. Headquartered in Nashville, Tennessee, Revance Therapeutics, Inc. (NASDAQ:RVNC) is a biotechnology company. On May 15, 2023, Revance Therapeutics, Inc. (NASDAQ:RVNC) stock closed at $33.86 per share. One-month return of Revance Therapeutics, Inc. (NASDAQ:RVNC) was 10.87%, and its shares gained 117.19% of their value over the last 52 weeks. Revance Therapeutics, Inc. (NASDAQ:RVNC) has a market capitalization of $2.929 billion.
Baron Discovery Fund made the following comment about Revance Therapeutics, Inc. (NASDAQ:RVNC) in its Q1 2023 investor letter:
“Revance Therapeutics, Inc. (NASDAQ:RVNC), an aesthetics-oriented biotechnology company, contributed to performance in the quarter. Revance, which sells facial injectables, saw robust revenue growth in the fourth quarter of 2022 (announced during the first quarter of 2023) after the FDA approved Daxxify, the company’s longer-acting competitor to Botox that lasts about six months versus Botox’s three to four months. Daxxify’s soft launch has been promising, with $11 million in sales in the first month of the early preview program. We believe Revance will benefit as it broadens the launch to additional injectors throughout the year. The company’s RHA facial filler portfolio also beat Street expectations in 2022 and has yet to decline amid macro headwinds. Looking ahead, we think Daxxify’s longer-lasting result is a key selling point for consumers, and we expect to see meaningful uptake of the product in late 2023 and beyond. In our view, Daxxify and the already launched RHA fillers should capture significant share in the fast-growing $4 billion facial injectables market, with the potential to support double Revance’s current valuation. In addition, the company is working on gaining approval for therapeutics-based applications of the product, which has shown very promising clinical trial results.”
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Revance Therapeutics, Inc. (NASDAQ:RVNC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Revance Therapeutics, Inc. (NASDAQ:RVNC) at the end of the fourth quarter which was 23 in the previous quarter.
We discussed Revance Therapeutics, Inc. (NASDAQ:RVNC) in another article and shared Baron Discovery Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 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.
