Baron Funds, an investment management company, released its “Baron Discovery Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 11.20% in the first quarter compared to the Russell 2000 Growth Index’s return of 6.07%. The strong performance of holdings in the Information Technology (IT), Industrials, and Consumer Discretionary sectors and the Fund’s higher exposure to the top-performing IT sector led the fund to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund highlighted stocks like Axonics, Inc. (NASDAQ:AXNX) in the first quarter 2023 investor letter. Headquartered in Irvine, California, Axonics, Inc. (NASDAQ:AXNX) is a medical technology company. On May 15, 2023, Axonics, Inc. (NASDAQ:AXNX) stock closed at $54.02 per share. One-month return of Axonics, Inc. (NASDAQ:AXNX) was -5.86%, and its shares gained 8.60% of their value over the last 52 weeks. Axonics, Inc. (NASDAQ:AXNX) has a market capitalization of $2.878 billion.
Baron Discovery Fund made the following comment about Axonics, Inc. (NASDAQ:AXNX) in its Q1 2023 investor letter:
“Axonics, Inc. (NASDAQ:AXNX) offers a novel implantable sacral neuromodulation device for the treatment of urinary and bowel dysfunction. Through an acquisition, it also offers Bulkamid, a unique injectable product to treat stress urinary incontinence (SUI) in women. Shares declined somewhat during the quarter. There wasn’t any particular negative catalyst. We retain conviction as Axonics’ product is unique and its current revenue run rate of $650 million to $700 million, represents less than 1% penetration of its addressable market (45,000 current procedures versus a market with close to 7 million addressable patients). Axonics thinks the implantable neuromodulation market can double in three to five years. Bulkamid has a current addressable market of $125 million, representing the 125,000 implantable sling procedures done every year in the U.S. However, with 29 million women affected by SUI, the market could be worth many multiples of that level, particularly as Bulkamid is a 15 minute in-office procedure with almost no side effects. We believe that this is realistic, given that the product’s current run rate already represents about half of the currently addressable market.”
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Axonics, Inc. (NASDAQ:AXNX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Axonics, Inc. (NASDAQ:AXNX) at the end of the fourth quarter which was 25 in the previous quarter.
We discussed Axonics, Inc. (NASDAQ:AXNX) in another article and shared the list of most promising medical stocks according to analysts. In addition, please check out our hedge fund investor letters Q1 2023 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.
