Baron Funds, an investment management firm, published its fourth quarter 2020 “Baron Asset Fund” investor letter – a copy of which can be downloaded here. A return of 15.14% was recorded by its Retail Shares, and 15.21% by its Institutional Shares in the fourth quarter of 2020, both below its Russell Midcap Growth Benchmark that delivered a 19.02% return but above its S&P 500 index that was up by 12.15% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron Funds, in their Q4 2020 investor letter, mentioned GoodRx Holdings, Inc. (NASDAQ: GDRX) and emphasized their views on the company. GoodRx Holdings, Inc. is a Santa Monica, California-based company that currently has a $14.4 billion market capitalization. Since the beginning of the year, GDRX delivered a -9.02% return, while its 3-month gains are also down by -24.05%. As of March 22, 2021, the stock closed at $37.62 per share.
Here is what Baron Funds has to say about GoodRx Holdings, Inc. in their Q4 2020 investor letter:
“GoodRx Holdings, Inc. operates the nation’s largest online platform providing users free access to drug pricing information and pharmacy discounts. After a well-received IPO, the shares fell on Amazon.com, Inc.’s announcement that it has entered the online pharmacy space. Although Amazon is a formidable rival, we believe its success is not assured, as its participation is limited to the low-penetration mail order segment of the market. GoodRx has the advantages of the leading brand in its space, best pricing, a tie-in with its telehealth unit, and nascent opportunities in referrals from drug manufacturers.”
Our calculations show that GoodRx Holdings, Inc. (NASDAQ: GDRX) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, GoodRx Holdings, Inc. was in 32 hedge fund portfolios, compared to 41 funds in the third quarter. GDRX delivered a -23.25% return in the past month.