Baron Funds, an asset management firm, published its “Baron Health Care Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron Health Care Fund (the “Fund”) declined 10.00% (Institutional Shares), compared with the 7.43% decline for the Russell 3000 Health Care Index (the “Benchmark”) and the 16.10% decline for the S&P 500 Index. Since its inception (April 30, 2018), the Fund increased 15.00% on an annualized basis compared with the 11.96% gain for the Benchmark and the 10.91% gain for the S&P 500 Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Baron Health Care Fund mentioned Bristol-Myers Squibb Company (NYSE:BMY) and explained its insights for the company. Founded in 1887, Bristol-Myers Squibb Company (NYSE:BMY) is a New York, New York-based pharmaceutical industry company with a $158.2 billion market capitalization. Bristol-Myers Squibb Company (NYSE:BMY) delivered a 18.89% return since the beginning of the year, while its 12-month returns are up by 7.50%. The stock closed at $74.13 per share on August 16, 2022.
Here is what Baron Health Care Fund has to say about Bristol-Myers Squibb Company (NYSE:BMY) in its Q2 2022 investor letter:
“We established a position in Bristol-Myers Squibb Company, a global biopharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of oncology, immunology, cardiovascular, and neurology. The stock trades at a low valuation relative to its current earnings because the company faces loss of exclusivity on several key drugs over the next eight years, including Revlimid, Eliquis, and Opdivo.
At the same time, Bristol-Myers has multiple new products in the early stages of launch (e.g., Opdualag, Camzyos, Breyanzi, and Reblozyl), a robust new product pipeline (e.g., Deucravacitinib, Milvexian, and CELMoD agents), and a strong balance sheet combined with strong free cash flow generation that the company can use for acquisitions. Management believes these growth drivers can more than offset the loss of exclusivity and drive revenue growth through the end of the decade. Given the company’s low valuation, if the company can execute, we think there is substantial upside in the stock.”
Our calculations show that Bristol-Myers Squibb Company (NYSE:BMY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Bristol-Myers Squibb Company (NYSE:BMY) was in 70 hedge fund portfolios at the end of the second quarter of 2022, compared to 66 funds in the previous quarter. Bristol-Myers Squibb Company (NYSE:BMY) delivered a -5.23% return in the past 3 months.
In July 2022, we also shared another hedge fund’s views on Bristol-Myers Squibb Company (NYSE:BMY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
