Is GW Pharmaceuticals (GWPH) a Smart Long-term Buy?

Alger Spectra Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. Class A shares of the Alger Spectra Fund outperformed the Russell 3000 Growth Index during the third quarter of 2020. You should check out Alger Spectra 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, Alger Spectra Fund Fund highlighted a few stocks and GW Pharmaceuticals Plc (NASDAQ:GWPH) is one of them. GW Pharmaceuticals Plc (NASDAQ:GWPH) is a pharmaceutical company. Year-to-date, GW Pharmaceuticals Plc (NASDAQ:GWPH) stock gained 9.9% and on December 29th it had a closing price of $114.91. Here is what Alger Spectra Fund said:

“GW Pharmaceuticals is producing cannabinoid-based pharmaceuticals without tetrahydrocannabinol, or THC, which is a mood-altering component in marijuana. These cannabinoids enable the identification of unique chemotypes that have positive effects on different diseases, including epilepsy, inflammatory disorders and psychosis. GW’s near-term focus is developing Epidiolex for use with treatment resistant epilepsy. with up to 40 Vo of epileptic patients continuing to have seizures after using three or more different drugs. The sales growth of Epidiolex has been disappointing because the virtual nature of diagnosis and prescribing drugs during the Covid-19 pandemic is challenging the adoption of this newer type of therapy; shares of GW Pharmaceuticals thus underperformed during the third quarter.”


Earlier this month, we published an article revealing that GW Pharmaceuticals Plc (NASDAQ:GWPH) was one of the top 5 cannabis stocks to buy now.

In Q3 2020, the number of bullish hedge fund positions on GW Pharmaceuticals Plc (NASDAQ:GWPH) stock decreased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in GWPH’s growth potential. Our calculations showed that GW Pharmaceuticals Plc (NASDAQ:GWPH) 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.