Baron Funds, an investment management company, released its “Baron Emerging Markets Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned 2.50% (Institutional Shares) compared to a 2.37% return for the MSCI EM Index (primary benchmark Index) and a 2.98% gain for the MSCI EM IMI Growth Index (the Proxy Benchmark). The fund performed in line with the primary benchmark while modestly underperformed the proxy benchmark. The recent strength in equities is due to the Fed’s indication that it will proceed with multiple rate cuts this year. To know the best picks for the fund in 2024, please check the top five holdings of the fund.
Baron Emerging Markets Fund highlighted stocks like Zai Lab Limited (NASDAQ:ZLAB), in the first quarter 2024 investor letter. Zai Lab Limited (NASDAQ:ZLAB) engages in the development and commercialization of therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience, with a market capitalization of $1.79 billion. The one-month return of Zai Lab Limited (NASDAQ:ZLAB) was 12.63%, and its shares lost 43.91% of their value over the last 52 weeks. On May 24, 2024, Zai Lab Limited (NASDAQ:ZLAB) stock closed at $17.92 per share.
Baron Emerging Markets Fund stated the following regarding Zai Lab Limited (NASDAQ:ZLAB) in its first quarter 2024 investor letter:
“Zai Lab Limited (NASDAQ:ZLAB) is a Chinese biotechnology company dedicated to bringing Western medicines to greater China and to transitioning to a fully integrated company with internal drug development capabilities. While performance as a business has been excellent, shares fell on concerns related to the advance in the U.S. Congress of the BIOSECURE Act, which would prohibit federal agencies from contracting with certain biotechnology firms in China. As a purely domestic player with minimal U.S. export aspirations, we do not believe Zai Lab would be impacted by the legislation, however in the near term, investors have reacted by reducing exposure to essentially all biotechnology-related entities in China.”
A doctor examining an X-ray or MRI scan to diagnose a neurological disorder.
Zai Lab Limited (NASDAQ:ZLAB) experienced strong revenue growth, in the first quarter with total revenues rising 39% year over year to $87.1 million, driven by continued advancements in key clinical programs. Zai Lab Limited (NASDAQ:ZLAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Zai Lab Limited (NASDAQ:ZLAB) at the end of the first quarter which was 15 in the previous quarter.
In another article, we discussed Zai Lab Limited (NASDAQ:ZLAB) and shared the list of best emerging markets stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2024 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.
