Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The Mid Company Fund returns of 14.08% in the quarter slightly lagged the 14.55% return for the Russell Midcap Growth Index. The fund declined 27.14% for the full year compared to a 25.87% return for the benchmark. In addition, check the fund’s top five holdings to know its best picks in 2023.
Brown Capital Management Mid Company Fund featured stocks like DexCom, Inc. (NASDAQ:DXCM) in its Q4 2023 investor letter. Headquartered in San Diego, California, DexCom, Inc. (NASDAQ:DXCM) is a medical device company. On March 26, 2024, DexCom, Inc. (NASDAQ:DXCM) stock closed at $139.93 per share. One-month return of DexCom, Inc. (NASDAQ:DXCM) was 22.51%, and its shares gained 22.79% of their value over the last 52 weeks. DexCom, Inc. (NASDAQ:DXCM) has a market capitalization of $53.945 billion.
Brown Capital Management Mid Company Fund stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its fourth quarter 2023 investor letter:
“The virtues of our patient, low-turnover approach were evident during the fourth quarter. As discussed in our last commentary, clinical-trial results from popular GLP-1 (glucagon-like peptide-1) obesity drugs showed that they lower the risk of diabetes, cardiovascular disease and other adverse health outcomes. These results were notable and as they emerged, we conducted additional research into GLP-1 drugs, for two reasons: first, to better understand the long-term efficacy of these drugs; and second, to determine the extent of the threat these drugs pose to some of our portfolio holdings.
Conversely, when the GLP-1 clinical trial data came out, investors immediately abandoned holdings like DexCom, Inc. (NASDAQ:DXCM), which manufactures and markets continuous glucose monitors, or CGMs, used to track the blood sugar of people with diabetes. Investors feared that the company’s market opportunity would shrink dramatically as the adoption of GLP-1 drugs rises. Beginning in August, after the first of the trial results came public, Dexcom declined nearly 30% peak to trough, and stock prices of many other medical device companies dropped well over 20%. However, since bottoming in mid-October, Dexcom’s stock price has rallied more than 60%. In fact, Dexcom was a top contributor during the fourth quarter, rising more than 30% and managed to close up 10% for the year after being down double-digits at one point…” (Click here to read the full text)
A doctor demonstrating how to use the medical device to a patient with diabetes.
DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, DexCom, Inc. (NASDAQ:DXCM) was held by 69 hedge fund portfolios, compared to 78 in the previous quarter, according to our database.
We discussed DexCom, Inc. (NASDAQ:DXCM) in another article and shared the list of best medical device stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
