Baron Discovery Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Discovery Fund returned 18.83% (institutional shares). This was 11.67% better than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and Teladoc Health Inc. (NYSE:TDOC) is one of them. Teladoc Health Inc. (NYSE:TDOC) is an healthcare company. Year-to-date, Teladoc Health Inc. (NYSE:TDOC) stock gained 133% and on December 2nd it had a closing price of $195.03. Here is what Baron Discovery Fund said:
“We sold our remaining investment in Teladoc Health, Inc., one of our most successful investments ever. Our view was that the company’s valuation felt a bit extended, and its market capitalization at over $19 billion was too large for the Fund to hold. Moreover, we believe that, on a pro-forma basis, the market cap will be around $40 billion after its recent bid to merge with Livongo Health, Inc., a transaction expected to be completed in the fourth quarter. We hold Teladoc’s management in the highest regard and admire the incredible company it has built over the last few years.”
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In August, we published an article revealing that Teladoc and Livongo merger could reshape the healthcare industry. The companies believe that the combination will create a global leader in consumer centered virtual care.
In Q2 2020, the number of bullish hedge fund positions on Teladoc Health Inc. (NYSE:TDOC) stock increased by about 22% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Teladoc’s growth potential. Our calculations showed that Teladoc Health Inc. (NYSE:TDOC) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
