Is ChemoCentryx, Inc. (CCXI) A Great Long-Term Investment?

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Wasatch Micro Cap Fund—Investor Class slipped -0.44% for the fourth quarter. The benchmark Russell Microcap® Index posted a larger decline of -2.66%, while small, mid, and large-cap benchmarks generally posted gains for the same period. With risk aversion and uncertainty elevated, cautious investors sought the perceived safety of larger companies. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wasatch Micro Cap Fund, in its Q4 2021 investor letter, mentioned ChemoCentryx, Inc. (NASDAQ: CCXI) and discussed its stance on the firm. ChemoCentryx, Inc. is a San Carlos, California-based biopharmaceutical company with a $1.7 billion market capitalization. CCXI delivered a -32.93% return since the beginning of the year, while its 12-month returns are down by -57.32%. The stock closed at $24.42 per share on March 03, 2022.

Here is what Wasatch Micro Cap Fund has to say about ChemoCentryx, Inc. in its Q4 2021 investor letter:

“Another strong stock in the Fund was ChemoCentryx, Inc. (CCXI). The company develops orally administered therapeutics for autoimmune diseases, inflammatory disorders and cancer. ChemoCentryx saw its stock price spike higher in October after the company’s lead drug candidate, avacopan, received approval from the Food and Drug Administration (FDA) for the treatment of ANCA-associated vasculitis, an autoimmune disease which causes narrowing of blood vessels and can lead to organ failure. Already approved for use in Japan, the drug cleared a key hurdle toward authorization in the European Union in November when an advisory committee rendered a positive opinion. An official decision from the European Commission is expected in January 2022.”

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Our calculations show that ChemoCentryx, Inc. (NASDAQ: CCXI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CCXI was in 29 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 17 funds in the previous quarter. ChemoCentryx, Inc. (NASDAQ: CCXI) delivered a -34.11% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on CCXI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.