Baron Health Care Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Health Care Fund returned 17.1% (institutional shares). In comparison, the benchmark S&P 500 Index was up 12.15%, while the Russell 3000 Health Care Index was up 10.08%. 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 Q4 2020 Investor Letter, Baron Health Care Fund highlighted a few stocks and Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) is one of them. Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) is a biopharmaceutical company. In the last three months, Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) stock gained 25% and on February 16th it had a closing price of $87.40. Here is what Baron Health Care Fund said:
“Arrowhead Pharmaceuticals, Inc. is a biotechnology company developing RNAi therapeutics for a long list of diseases. Shares rose given a multitude of upcoming data readouts, a large financial deal with Takeda, and the prospect of increasing RNAi applications from just the liver to other tissue types (i.e., other diseases). We retain high conviction in Arrowhead and expect it to become a large multinational pharmaceutical company over time.”
In Q3 2020, the number of bullish hedge fund positions on Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) stock increased by about 5% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in ARWR’s growth potential. Our calculations showed that Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) 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.