Positive Clinical Trial Results Pushed Prometheus Biosciences (RXDX) in Q4

Alger Capital, an investment management company, released its “Alger Small Cap Focus Fund” fourth quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund underperformed the Russell 2000 Growth Index. The Energy and Communication Services sectors contributed to the fund’s relative performance in the quarter, while Consumer Discretionary and Information Technology detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Alger Small Cap Focus Fund highlighted stocks like Prometheus Biosciences, Inc. (NASDAQ:RXDX) in the Q4 2022 investor letter. Headquartered in San Diego, California, Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a clinical-stage biotechnology company. On March 15, 2023, Prometheus Biosciences, Inc. (NASDAQ:RXDX) stock closed at $115.58 per share. One-month return of Prometheus Biosciences, Inc. (NASDAQ:RXDX) was -4.30%, and its shares gained 161.14% of their value over the last 52 weeks. Prometheus Biosciences, Inc. (NASDAQ:RXDX) has a market capitalization of $5.494 billion.

Alger Small Cap Focus Fund made the following comment about Prometheus Biosciences, Inc. (NASDAQ:RXDX) in its Q4 2022 investor letter:

“Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a biotechnology company focused on developing precision-based medicines to treat autoimmune conditions, primarily those afflicting the intestines such as inflammatory bowel disease (IBD) indications like ulcerative colitis and Crohn’s disease by leveraging a proprietary bioinformatics database. Shares outperformed during the period as the company reported positive Phase 2 clinical trial results from its (BD study, as the drug demonstrated significant patient improvement that was well above expectations. We believe Prometheus is an example of a company with “great discovery value”, as they could potentially be the leader and first-in-class precision-based drug to treat autoimmune diseases.”

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Prometheus Biosciences, Inc. (NASDAQ:RXDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Prometheus Biosciences, Inc. (NASDAQ:RXDX) at the end of the fourth quarter which was 25 in the previous quarter.

We discussed Prometheus Biosciences, Inc. (NASDAQ:RXDX) in another article and shared the list of best performing biotech stocks in 2022. 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.