Baron Opportunity Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Opportunity Fund returned 10.14% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 3000 Growth Index was up 11.38%. You should check out Baron’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) is one of them. Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) is a biopharmaceutical company. In the last three months, Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) stock lost 12%. Here is what the fund said:
“Arrowhead Pharmaceuticals, Inc. develops RNA interference (RNAi) therapies. Shares increased on positive clinical updates for its lead programs in Alpha-1 Antitrypsin disease. Investors have also started to focus on data catalysts for the RNAi platform. We retain conviction in Arrowhead as a core holding in the RNAi field as we believe RNAi is the best positioned new therapeutic modality to capture treatment of patients at volume given quarterly, biennial, or annual dosing and clean safety profiles.”
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Baron Fund has been a long time Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) bull. In February 2021, we shared Baron Fund ARWR’s thesis in this article.
In Q1 2021, the number of bullish hedge fund positions on Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) stock decreased by about 17% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in ARWR’s growth potential. Our calculations showed that Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
