Here’s Why Exact Sciences (EXAS) Landed in RiverPark’s Detractor List

RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. The RiverPark Large Growth Fund (the “Fund”) returned -3.23% for the third quarter of 2021, while its benchmarks, the S&P 500 Total Return Index (“S&P”) advanced 0.58%, the Russell 1000 Growth Total Return Index (“RLG”) returned 1.16%, while the Morningstar Large Growth Category returned -0.07%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

RiverPark Large Growth Fund, in its Q3 2021 investor letter, mentioned Exact Sciences Corporation (NASDAQ: EXAS) and discussed its stance on the firm. Exact Sciences Corporation is a Madison, Wisconsin-based molecular diagnostics company with a $13.8 billion market capitalization. EXAS delivered a -39.19% return since the beginning of the year, while its 12-month returns are down by -38.34%. The stock closed at $80.57 per share on December 02, 2021.

Here is what RiverPark Large Growth Fund has to say about Exact Sciences Corporation  in its Q3 2021 investor letter:

“Despite reporting a strong quarter, EXAS shares were our next top detractor on a modest guidance raise and a lowering of screening revenue expectations, as access to physicians’ offices for the sales force and in-person wellness visits have not recovered at the pace previously expected. The company reported second-quarter revenue of $435 million, an increase of 62% year over year (despite COVID testing down 6%), but management only
modestly increased annual revenue guidance, as 55% of primary care doctors are still not allowing in-person sales visits and 44% are still conducting fewer in-person wellness visits vs. pre-COVID.

In the last year, Exact has pivoted from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) to multi-cancer screening through its Thrive acquisition, and to minimal residual disease and recurrence monitoring through its Ashion and Tardis acquisitions. Through this pivot, Exact has tripled its market opportunity from $20 billion to $60 billion.”

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Based on our calculations, Exact Sciences Corporation (NASDAQ: EXAS) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. EXAS was in 40 hedge fund portfolios at the end of the third quarter of 2021, compared to 35 funds in the previous quarter. Exact Sciences Corporation (NASDAQ: EXAS) delivered a -25.84% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.