Baron Health Care Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Health Care Fund returned 11.64% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.93%, while the Russell 3000 Health Care Index was up 6.48%. You should check out Baron’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Baron Health Care Fund highlighted a few stocks and Acceleron Pharma Inc (NASDAQ:XLRN) is one of them. Acceleron Pharma Inc (NASDAQ:XLRN) is a clinical stage biopharmaceutical company. Year-to-date, Acceleron Pharma Inc (NASDAQ:XLRN) stock gained 134% and on December 10th it had a closing price of $124.08. Here is what Baron Health Care Fund said:
“We added to Acceleron Pharma Inc., a biopharmaceutical company commercializing a drug called Luspatercept for anemia in two approved life threatening diseases (myelodysplastic syndrome and beta thalassemia) while concomitantly running Phase 3 clinical trials for Sotatercept in a life threating disease called pulmonary arterial hypertension (“PAH”). We think both drugs and their various addressable disease indications have blockbuster potential and are bullish on Acceleron’s future. We added to our holdings this past quarter as there was a trading dynamic in play that hurt share performance. Namely, there was debate about Acceleron’s ability to file its PAH clinical package on Phase 2 data alone, even though the company repeatedly said that it would do so, which created an opportunity for us to purchase more shares.”
In Q2 2020, the number of bullish hedge fund positions on Acceleron Pharma Inc (NASDAQ:XLRN) stock increased by about 26% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Acceleron’s growth potential. Our calculations showed that Acceleron Pharma Inc (NASDAQ:XLRN) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.