Baron Funds, an investment management company, released its “Baron Health Care Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund increased by 9.08% (Institutional Shares) compared to an 11.54% gain for the Russell 3000 Health Care Index and a 7.56% gain for the S&P 500 Index. The fund fell 16.90% in 2022, compared to a 6.10% decline for the Russell 3000 Health Care Index and an 18.11% decline for the S&P 500 Index. Factors like cash exposure in the up-market, adverse stock selection, and differences in sub-industry exposures led the fund to underperform in the quarter relative to its benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds highlighted stocks like Schrödinger, Inc. (NASDAQ:SDGR) in the Q4 2022 investor letter. Headquartered in New York, New York, Schrödinger, Inc. (NASDAQ:SDGR) provides a physics-based software platform for pharmaceutical, biotechnology, and materials research. On January 30, 2023, Schrödinger, Inc. (NASDAQ:SDGR) stock closed at $22.05 per share. One-month return of Schrödinger, Inc. (NASDAQ:SDGR) was 17.98%, and its shares lost 22.22% of their value over the last 52 weeks. Schrödinger, Inc. (NASDAQ:SDGR) has a market capitalization of $1.571 billion.
Baron Funds made the following comment about Schrödinger, Inc. (NASDAQ:SDGR) in its Q4 2022 investor letter:
“The Fund’s only remaining position in health care technology, physics-based drug discovery platform Schrödinger, Inc. (NASDAQ:SDGR), weighed the most on performance. Schrodinger’s shares were down after management lowered guidance due to foreign currency headwinds, lower-than-anticipated adoption and scale-up by smaller biotechnology companies impacted by the capital markets environment, and uncertainty about the timing of year-end purchase decisions among the company’s largest customers.
Schrodinger, Inc. is dedicated to the usage of physics-based computer modeling for drug discovery. Shares were down after management lowered guidance due to a modest impact from foreign currency headwinds, lower-than-anticipated adoption and scale-up by smaller biotechnology companies impacted by the capital markets environment, and uncertainty about the timing of year-end purchase decisions among its largest customers. We reduced the position due to concerns about near-term trends in the software business, but we continue to believe Schrodinger’s computational platform has significant value.”
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Schrödinger, Inc. (NASDAQ:SDGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Schrödinger, Inc. (NASDAQ:SDGR) at the end of the third quarter, which was 23 in the previous quarter.
We discussed Schrödinger, Inc. (NASDAQ:SDGR) in another article and shared the AI 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.
