Is Illumina (ILMN) a Smart Long-Term Buy?

Baron Funds, an asset management firm, published its “Baron Fifth Avenue Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Baron Fifth Avenue Growth Fund (the “Fund”) lost 30.6% (Institutional Shares) during the second quarter, which compared to losses of 20.9% for the Russell 1000 Growth Index (“R1KG”) and 16.1% for the S&P 500 Index (“SPX”), the Fund’s benchmarks. Year-to-date, the Fund has lost 45.2% compared to losses of 28.1% and 20.0% for the Fund’s benchmarks, respectively. 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 Fifth Avenue Growth Fund mentioned Illumina, Inc. (NASDAQ:ILMN) and explained its insights for the company. Founded in 1998, Illumina, Inc. (NASDAQ:ILMN) is a San Diego, California-based biotechnology company with a $32.6 billion market capitalization. Illumina, Inc. (NASDAQ:ILMN) delivered a -45.51% return since the beginning of the year, while its 12-month returns are down by -54.86%. The stock closed at $207.31 per share on September 08, 2022.

Here is what Baron Fifth Avenue Growth Fund has to say about Illumina, Inc. (NASDAQ:ILMN) in its Q2 2022 investor letter:

“During the second quarter, we took advantage of stock market volatility by adding to eight of our holdings including the leading DNA sequencing platform, Illumina. Within Health Care, the life sciences tools & services sub-industry was the culprit as increased competitive noise in DNA sequencing caused a 47% decline in the stock price of Illumina (NASDAQ:ILMN).”

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Our calculations show that Illumina, Inc. (NASDAQ:ILMN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Illumina, Inc. (NASDAQ:ILMN) was in 44 hedge fund portfolios at the end of the second quarter of 2022, compared to 54 funds in the previous quarter. Illumina, Inc. (NASDAQ:ILMN) delivered a -7.64% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on Illumina, Inc. (NASDAQ:ILMN) 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.