Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The fund’s performance was flat compared to the Russell 2000 Growth Index in the fourth quarter. The fund (institutional shares) returned 0.22% compared to the benchmark return of 4.13%. The fund (institutional shares) fell by 35.12% for the full year compared to a 26.36% decline for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Discovery Fund highlighted stocks like Revance Therapeutics, Inc. (NASDAQ:RVNC) in the Q4 2022 investor letter. Headquartered in Nashville, Tennessee, Revance Therapeutics, Inc. (NASDAQ:RVNC) is a biotechnology company. On February 24, 2023, Revance Therapeutics, Inc. (NASDAQ:RVNC) stock closed at $34.12 per share. One-month return of Revance Therapeutics, Inc. (NASDAQ:RVNC) was 3.96%, and its shares gained 151.44% of their value over the last 52 weeks. Revance Therapeutics, Inc. (NASDAQ:RVNC) has a market capitalization of $2.807 billion.
Baron Discovery Fund made the following comment about Revance Therapeutics, Inc. (NASDAQ:RVNC) in its Q4 2022 investor letter:
“Shares of Revance Therapeutics, Inc. (NASDAQ:RVNC), an aesthetics-oriented biotechnology company, detracted from performance in the fourth quarter. Shares had meaningfully outperformed in the third quarter, after the FDA approved Daxxify, the company’s longer-acting competitor to Botox that lasts about six months versus Botox’s three to four months. The stock is in somewhat of a news vacuum as Revance is training injectors and smartly implementing a tightly managed preview program ahead of a broader launch in the second quarter of 2023. Early feedback on Daxxify has been positive. Part of the stock weakness may also be due to concerns around the impact of macro headwinds on discretionary consumer spending. Although we expect some near-term impact to Revance’s RHA dermal filler portfolio, we think the impact will be temporary and shouldn’t be the focus given the imminent broader Daxxify launch. More importantly, we think Daxxify’s longer-lasting result is a key selling point for consumers, and we expect to see meaningful uptake of the product in late 2023 and beyond. Ultimately, we see Daxxify and the already-launched RHA fillers capturing significant share in the fast growing $4 billion facial injectables market and supporting more than triple the company’s current valuation.”
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Revance Therapeutics, Inc. (NASDAQ:RVNC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Revance Therapeutics, Inc. (NASDAQ:RVNC) at the end of the fourth quarter which was 23 in the previous quarter.
We discussed Revance Therapeutics, Inc. (NASDAQ:RVNC) in another article and shared the list of best small-cap healthcare stocks to buy. 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.
