Baron Health Care Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Health Care Fund returned 17.1% (institutional shares). In comparison, the benchmark S&P 500 Index was up 12.15%, while the Russell 3000 Health Care Index was up 10.08%. 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 Q4 2020 Investor Letter, Baron Health Care Fund highlighted a few stocks and Genmab A/S (NASDAQ:GMAB) is one of them. Genmab A/S (NASDAQ:GMAB) is a biotechnology company. In the last three months, Genmab A/S (NASDAQ:GMAB) stock gained 9.4% and on February 18th it had a closing price of $40.47. Here is what Baron Health Care Fund said:
“We initiated a position in Genmab A/S, a Denmark-based biotechnology company focused on the development and commercialization of differentiated antibody therapeutics for the treatment of cancer. Genmab proved its initial success with the drug Darzalex for multiple myeloma (partnered with Johnson & Johnson), a drug which has changed the treatment paradigm for multiple myeloma. Management anticipates recurring revenues from Darzalex and other existing products will grow 2.5 times over the next five years. Plus, Genmab has an expanding pipeline of highly sophisticated antibodies targeting both solid tumors and blood tumors with potential to drive even stronger revenue growth. We are excited about the Genmab investment as we view the company’s proprietary technology and novel pipeline as best-in-class within the biotechnology industry.
Although outside of the top five purchases, we are excited about new addition BridgeBio Pharma, Inc., a biotechnology company developing a portfolio of breakthrough medicines for genetic diseases and cancers with genetic drivers. BridgeBio operates with a decentralized corporate structure in which each program is housed in its own subsidiary. Management believes this enables a team of experts who are economically incentivized at the program level to make key operational decisions, thereby making the development process more efficient. In addition, by focusing on drugs that target well-characterized genetic diseases at their source, the company increases its probability of success compared with other therapeutic categories. As evidence of the platform’s ability to deliver, there are four late-stage trials and a small commercial opportunity expected to readout or launch in 2021, just six years after the company’s founding. We expect the number of key value-creating pipeline candidates to keep increasing every year.”
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In Q3 2020, the number of bullish hedge fund positions on Genmab A/S (NASDAQ:GMAB) stock increased by about 20% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Genmab’s growth potential. Our calculations showed that Genmab A/S (NASDAQ:GMAB) 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.
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 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. 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.
