Brown Capital Management Mid Company Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 16.55% (inst. class) for the quarter, underperforming its benchmark, the Russell Midcap Growth Index which returned 19.02% in the same quarter. You should check out Brown Capital Management’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, the fund highlighted a few stocks and Dexcom Inc (NASDAQ:DXCM) is one of them. Dexcom Inc (NASDAQ:DXCM) is a company that develops, manufactures, and distributes continuous glucose monitoring systems for diabetes management. In the last three months, Dexcom Inc (NASDAQ:DXCM) stock gained 13.6% and on March 2nd it had a closing price of $391.91. Here is what the fund said:
“Dexcom has developed and commercialized a leading continuous glucose monitoring (CGM) system for people with diabetes, with the company’s share of the nearly $4 billion worldwide CGM market currently standing at more than 35%. Dexcom’s shares have lagged partly from market rotation to COVID-19-related underperformers, especially more cyclical names, as well as company-specific issues. Dexcom’s CGM’s pricing uncertainty, in combination with a new product timeline for G7—a much thinner, less expensive, fully disposable CGM—and competition from Libre (made by Abbott) all could reduce Dexcom’s market share. Dexcom has made a concerted effort to provide users broader access to the pharmacy versus durable medical equipment channels across a number of payers. Also, Dexcom established pharmacy pricing terms with some payers that were close to Libre prices in an effort to drive out-of-pocket costs for G6 users to levels not too dissimilar from Libre price points. We believe the price/mix pressure should lessen over time, while Dexcom still has attractive opportunities in the Type-2 diabetes market for years to come.”
In Q3 2020, the number of bullish hedge fund positions on Dexcom Inc (NASDAQ:DXCM) stock increased by about 5% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Dexcom’s growth potential. Our calculations showed that Dexcom Inc (NASDAQ:DXCM) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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