Wasatch Micro Cap Fund recently released its Q2 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 3.11% for the quarter, underperforming its benchmark, the Russell Microcap Index which returned 4.14% in the same quarter. You should check out Wasatch’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and ChemoCentryx Inc. (NASDAQ:CCXI) is one of them. ChemoCentryx Inc. (NASDAQ:CCXI) is a biopharmaceutical company. In the last three months, ChemoCentryx Inc. (NASDAQ:CCXI) stock gained 23%. Here is what the fund said:
“Another weak stock in the Fund was ChemoCentryx, Inc. (CCXI). The company develops orally administered therapeutics for autoimmune diseases, inflammatory disorders and cancer. ChemoCentryx saw its stock price tumble in May after the U.S. Food and Drug Administration (FDA) published a briefing document questioning the efficacy and safety of the company’s lead drug candidate, avacopan, in clinical trials for the treatment of the autoimmune disease ANCA vasculitis. Although we could find no factual basis for the FDA’s actions, we liquidated the Fund’s position in ChemoCentryx given the substantial increase in uncertainty.”
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In Q1 2021, the number of bullish hedge fund positions on ChemoCentryx Inc. (NASDAQ:CCXI) stock decreased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in CCXI’s growth potential. Our calculations showed that ChemoCentryx Inc. (NASDAQ:CCXI) 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.
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Disclosure: None. This article is originally published at Insider Monkey.
