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 Biohaven Pharmaceutical Holding Co Ltd. (NYSE:BHVN) is one of them. Biohaven Pharmaceutical Holding Co Ltd. (NYSE:BHVN) is a clinical-stage biopharmaceutical company. Year-to-date, Biohaven Pharmaceutical Holding Co Ltd. (NYSE:BHVN) stock gained 61.7% and on December 2nd it had a closing price of $88.03. Here is what Baron Discovery Fund said:
“Biohaven Pharmaceutical Holding Company Ltd. is a pharmaceutical company in the early stages of launching a novel oral migraine drug called Nurtec to a market which has not seen a novel drug modality in decades. Nurtec inhibits the Calcitonin Gene-Related Peptide (“CGRP”) pathway and is competing in a class of five other drugs inhibiting CGRP (four intravenous versions with roughly $1 billion in annual sales today and one oral version). We think Nurtec has the best profile given its advantages of convenience, efficacy, onset of action, safety, and an eventual dual label for both acute use (approved today) and chronic/prophylactic usage (2021 approval is expected). In the third quarter, we saw underperformance from a combination of mean reversion (Biohaven had strong first half performance), concerns over gross to net drug pricing as payor contracts are negotiated and deals are brokered for access/reimbursement, and perhaps a strong push by oral competitor Ubrelvy (Allergan/AbbVie) with a large advertising campaign featuring Serena Williams at the U.S. Open. Regardless, we think Biohaven’s superior molecule will rise to the top and that Nurtec will attain blockbuster status.”
Copyright: katrintimoff / 123RF Stock Photo
In Q2 2020, the number of bullish hedge fund positions on Biohaven Pharmaceutical Holding Co Ltd. (NYSE:BHVN) stock increased by about 45% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in BHVN’s growth potential. Our calculations showed that Biohaven Pharmaceutical Holding Co Ltd. (NYSE:BHVN) 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
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
