Is Guardant Health (GH) a Smart Long-term Buy?

Baron Asset Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Asset Fund returned 8.43% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.93%, while the Russell Midcap Growth Index was up 9.37%. You should check out Baron Asset Fund’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 Asset Fund highlighted a few stocks and Guardant Health Inc. (NASDAQ:GH) is one of them. Guardant Health Inc. (NASDAQ:GH) is a precision oncology company. Year-to-date, Guardant Health Inc. (NASDAQ:GH) stock gained 58.9% and on December 7th it had a closing price of $124.15. Here is what Baron Asset Fund said:

“Last quarter, the Fund initiated a position in Guardant Health, Inc., which we added to this quarter. The company offers a liquid biopsy test to detect advanced stage cancer, and it is developing liquid biopsy tests for recurrence detection in cancer survivors and early detection of cancer in higher-risk individuals. We believe Guardant’s liquid biopsy tests are superior to tissue biopsy because they are less invasive, do not require physical access to the tumor, are more representative of the tumor’s molecular profile, enable repeat sampling, have faster turnaround times, and support real-time monitoring.

We believe that Guardant has important competitive advantages, including unique technology incorporating proprietary biochemistries and machine learning, demonstrated clinical utility, regulatory barriers, payer coverage, and commercial adoption. We believe the market opportunity for Guardant’s tests could be greater than $35 billion in the U.S. alone. This includes large markets for therapy selection in advanced cancers, recurrence detection in cancer survivors, and early-stage cancer detection among highrisk individuals.”


In Q2 2020, the number of bullish hedge fund positions on Guardant Health Inc. (NASDAQ:GH) stock increased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Guardant’s growth potential. Our calculations showed that Guardant Health Inc. (NASDAQ:GH) 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

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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.