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 Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) is one of them. Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) is a biotechnology company. Year-to-date, Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) stock gained 9.0% and on December 10th it had a closing price of $24.02. Here is what Baron Health Care Fund said:
“Dicerna Pharmaceuticals, Inc. is a biotechnology company focused on developing RNAi (interference) technology to silence or turn off genes that cause disease. It currently has three drug candidates in clinical trial targeted towards primary hyperoxaluria, hepatitis B, and alpha one anti-trypsin disease. Despite incremental news flow that was positive on the margins, shares fell as major catalysts are not expected this year, which creates a sentiment overhang. We retain conviction. We remain confident in Dicerna’s long-term prospects and the prospects of RNAi drugs in general.”
In October, we published an article revealing that Marc Schneidman’s Aquilo Capital Management is buying Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) stock. Dicerna is Aquilo Capital Management’s favorite health stock after the fund bumped up the size of its DRNA position by 18%, knocking Uniqure NV out of that position, which it had held for two quarters.
In Q2 2020, the number of bullish hedge fund positions on Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) stock increased by about 40% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Dicerna’s growth potential. Our calculations showed that Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) 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.