Baron Discovery Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Discovery Fund returned 18.83% (institutional shares). This was 11.67% better than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’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 Discovery Fund highlighted a few stocks and Applied Therapeutics Inc. (NASDAQ:APLT) is one of them. Applied Therapeutics Inc. (NASDAQ:APLT) is a clinical-stage biopharmaceutical company. Year-to-date, Applied Therapeutics Inc. (NASDAQ:APLT) stock lost 23.6% and on December 1st it had a closing price of $20.84. Here is what Baron Discovery Fund said:
“Applied Therapeutics, Inc. is a biotechnology company developing Aldose Reductase inhibitors for both orphan diseases (Galactosemia and SORD/ PMM2 neuropathy) and the broader diabetes population to treat complications like retinopathy, neuropathy, nephropathy, and cardiomyopathy. Shares have underperformed since a series of short reports were released in early summer that we do not believe accurately portray the company’s fundamental opportunities. This was then compounded by an August 14 FDA partial clinical hold placed on the Galactosemia trial to ensure that all patients got a therapeutic dose of the drug (companies generally start dosing low and the FDA is concerned that sick children will get an ineffective drug dose). While near-term trading dynamics have been challenging, we think Applied Therapeutics has way too much optionality and potential to ignore and we retain conviction in the company.”
In Q1 2020, the number of bullish hedge fund positions on Applied Therapeutics Inc. (NASDAQ:APLT) stock increased by about 129% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in APLTs growth potential. Our calculations showed that Applied Therapeutics Inc. (NASDAQ:APLT) 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
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Disclosure: None. This article is originally published at Insider Monkey.