Is it Worthy to Keep Your Schrödinger (SDGR) Shares?

Baron Growth Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2021, the Baron Growth Fund returned 3.63% (institutional shares). In comparison, the benchmark S&P 500 Index was up 0.58%, while the Russell 2000 Growth Index was down 5.65%. You should check out Baron Growth Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2022.

Baron Growth Fund, in its Q3 2021 investor letter, mentioned Schrödinger, Inc. (NASDAQ: SDGR) and discussed its stance on the firm. Schrödinger, Inc. is a New York, New York-based materials science company with a $2.6 billion market capitalization. SDGR delivered a -53.49% return since the beginning of the year, while its 12-month returns are down by -48.71%. The stock closed at $36.83 per share on December 09, 2021.

Here is what Baron Growth Fund has to say about Schrödinger, Inc.  in its Q3 2021 investor letter:

“Schrodinger, Inc. is a hybrid biotechnology and technology company that uses molecular dynamics and free energy perturbations to model drug/target interactions for both third parties and its own internal efforts. Shares fell following second quarter financial results in which the company did not raise guidance and noted that revenue was weighted toward the fourth quarter. As we focus on company fundamentals and not these types of short-term issues, we remain shareholders.”

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Based on our calculations, Schrödinger, Inc. (NASDAQ: SDGR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SDGR was in 20 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. Schrödinger, Inc. (NASDAQ: SDGR) delivered a -41.32% return in the past 3 months.

Earlier this year, we also shared Baron Fund’s views on SDGR in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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