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 Silk Road Medical, Inc (NASDAQ:SILK) in the first quarter 2023 investor letter. Headquartered in Sunnyvale, California, Silk Road Medical, Inc (NASDAQ:SILK) is a medical device company. On May 15, 2023, Silk Road Medical, Inc (NASDAQ:SILK) stock closed at $34.52 per share. One-month return of Silk Road Medical, Inc (NASDAQ:SILK) was -21.90%, and its shares gained 14.46% of their value over the last 52 weeks. Silk Road Medical, Inc (NASDAQ:SILK) has a market capitalization of $1.337 billion.
Baron Discovery Fund made the following comment about Silk Road Medical, Inc (NASDAQ:SILK) in its Q1 2023 investor letter:
“Silk Road Medical, Inc (NASDAQ:SILK) sells medical devices used in minimally invasive transcarotid artery revascularization (TCAR) procedures. The company’s TCAR device allows placement of a stent in the carotid artery to provide better blood flow to the brain, while reducing the risk of stroke during the procedure due to its innovative reverse blood flow system. The stock declined after a group of doctors petitioned Medicare to broaden reimbursement for a competitive minimally invasive procedure called transfemoral carotid stenting (TF-CAS). We retain conviction given TCAR is less invasive, easier to recover from, and causes less periprocedural stroke than other options, including TF-CAS and carotid endarterectomy surgery (CEA). CEA is a more invasive procedure which requires a broad incision into the wall of the artery. Following last summer’s FDA approval of Silk Road devices in the treatment of standard surgical risk carotid stenosis patients (an expansion beyond high-risk only cases), the company saw rising numbers of eligible patients, accelerated use of its products, reduced reimbursement uncertainty, and further legitimization of TCAR in the eyes of more conservative surgeons. Although Medicare is reviewing the reimbursement policy for TF-CAS procedures, we think TCAR is fundamentally safer and more scalable than alternatives. TCAR currently accounts for nearly 13% of carotid stenosis interventions, and we believe it will become the standard of care for treating carotid artery disease over the longer term.”
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Silk Road Medical, Inc (NASDAQ:SILK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Silk Road Medical, Inc (NASDAQ:SILK) at the end of the fourth quarter which was 14 in the previous quarter.
We discussed Silk Road Medical, Inc (NASDAQ:SILK) in another article and shared TimesSquare Capital Management’s views on the company. 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.
