Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The Mid Company Fund returned 5.43% in the quarter compared to a 6.90% return for the Russell Midcap Growth Index. For the full year, the fund declined 37.12% compared to a -26.72% return for the benchmark. In addition, check the fund’s top five holdings to know its best picks in 2022.
The Brown Capital Management Mid Company Fund highlighted stocks like DexCom, Inc. (NASDAQ:DXCM) in the Q4 2022 investor letter. Headquartered in San Diego, California, DexCom, Inc. (NASDAQ:DXCM) is a medical device company. On March 17, 2023, DexCom, Inc. (NASDAQ:DXCM) stock closed at $113.93 per share. One-month return of DexCom, Inc. (NASDAQ:DXCM) was -0.72%, and its shares lost 2.63% of their value over the last 52 weeks. DexCom, Inc. (NASDAQ:DXCM) has a market capitalization of $44.268 billion.
The Brown Capital Management Mid Company Fund made the following comment about DexCom, Inc. (NASDAQ:DXCM) in its Q4 2022 investor letter:
“DexCom, Inc. (NASDAQ:DXCM) develops market-leading continuous glucose monitors (CGMs) for diabetics. On Dec. 8, DexCom received Food and Drug Administration (FDA) approval for its next-generation G7 device for all diabetes, including Type 1 and Type 2. The G7 device will launch in early 2023, with the company working to expand reimbursement coverage for the product. We expect the commercial Durable Medical Equipment and Medicare channels to provide coverage relatively soon following approval, with commercial pharmacy coverage coming sometime in the second or third quarters of 2023. The G7 device has some powerful form factors that should generate new patient demand. The G7 device is 60% smaller than the G6, with only a 30- minute warmup period, and both attributes are superior to their main competitor, Abbott’s Libre 3 device.
Also, The Centers for Medicare and Medicaid (CMS) has issued a draft coverage-determination proposal that would expand coverage for CGMs. Under the proposal, the CMS would cover CGMs for diabetes patients who are treated with insulin or “have a history of problematic hypoglycemic,” as defined by the frequency or severity, regardless of whether they have Type 1 or Type 2 diabetes. DexCom should benefit from this expanded coverage.
Given the FDA approval of G7, this helps position DexCom for durable long-term growth, especially with other new products as well as Total Addressable Market (TAM) expansion opportunities. DexCom has put up impressive growth numbers despite the backdrop of macroeconomic, inflationary and currency headwinds. We still believe the business is undervalued in the context of its long-term growth potential and operational levers.”
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DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the fourth quarter, which was 62 in the previous quarter.
We discussed DexCom, Inc. (NASDAQ:DXCM) in another article and shared ClearBridge Large Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.
