Baron Funds, an investment management company, released its “Baron Small Cap Fund” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund was 4.24% up in the fourth quarter compared to a 4.13% return for the Russell 2000 Growth Index and a 7.56% return for the S&P 500 Index. For 2022, the fund was down 31.05% compared to a 26.36% fall for the Russell 2000 Growth Index and an 18.11% decline for the S&P 500 Index. Inflation and aggressive fed tightening impacted the fund’s performance in 2022. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Small Cap Fund highlighted stocks like Inspire Medical Systems, Inc. (NYSE:INSP) in its Q4 2022 investor letter. Headquartered in Golden Valley, Minnesota, Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company. On February 16, 2023, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $269.98 per share. One-month return of Inspire Medical Systems, Inc. (NYSE:INSP) was 8.49% and its shares gained 19.15% of their value over the last 52 weeks. Inspire Medical Systems, Inc. (NYSE:INSP) has a market capitalization of $7.842 billion.
Baron Small Cap Fund made the following comment about Inspire Medical Systems, Inc. (NYSE:INSP) in its Q4 2022 investor letter:
“Inspire Medical Systems, Inc. (NYSE:INSP) sells an implantable device that treats sleep apnea. Revenues grew an astounding 77% in the quarter, way ahead of expectations, and the stock popped. We believe Inspire sells a unique product that has great advantages to CPAP devices, the dominant therapy, and is gaining significant market share. Management is executing on all frontsdriving awareness through effective advertising, increasing procedures at existing centers, and adding new centers. They are also continuing to innovate. This quarter a new Bluetooth remote control device was introduced. The next generation device will come out in mid-2023, and we expect approval of new indications, which will expand the available market. We expect revenues to continue to grow rapidly, with sales potential well over $2 billion, which is five-fold higher than current revenue. We believe the company will be profitable in 2023 and margins will be high over time.”
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Inspire Medical Systems, Inc. (NYSE:INSP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Inspire Medical Systems, Inc. (NYSE:INSP) at the end of the third quarter, which was 31 in the previous quarter.
We discussed Inspire Medical Systems, Inc. (NYSE:INSP) in another article and shared the list of best medical technology stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.
