Is Esperion Therapeutics (ESPR) a Smart Long-term Buy?

Wasatch Micro Cap Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 31.3% for the quarter, underperforming its benchmark, the Russell Microcap Index which returned 31.4% in the same quarter. You should check out Wasatch’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, Wasatch highlighted a few stocks and Esperion Therapeutics Inc. (NASDAQ:ESPR) is one of them. Esperion Therapeutics Inc. (NASDAQ:ESPR) is a pharmaceutical company. In the last three months, Esperion Therapeutics Inc. (NASDAQ:ESPR) stock gained 0.5% and on February 25th it had a closing price of $27.68. Here is what Wasatch said:

“Esperion Therapeutics, Inc. (ESPR) was also a detractor. The company develops oral therapies for people with elevated low-density lipoprotein cholesterol (LDL-C, or “bad cholesterol”). Esperion’s recently approved flagship medications, Nexletol® and Nexlizet,™ are intended to increase the effectiveness of statins and other cholesterollowering drugs in high-risk patients. However, sales of these new products have been hampered as patients fearful of contracting Covid-19 postponed routine physicals and other non-urgent appointments during which the medications might have been prescribed. Given the many challenges involved, uptake of the new drugs has been encouraging in our view. We remain optimistic about Esperion’s long-term prospects and continue to own it.”


Earlier this month, we published an article revealing that Baron Discovery Fund is betting on Esperion Therapeutics Inc. (NASDAQ:ESPR) stock.

In Q3 2020, the number of bullish hedge fund positions on Esperion Therapeutics Inc. (NASDAQ:ESPR) stock decreased by about 11% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in ESPR’s growth potential. Our calculations showed that Esperion Therapeutics Inc. (NASDAQ:ESPR) 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.

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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