Is Novo Nordisk (NVO) a Smart Long-Term Investment?

Baron Funds, an asset management firm, published its “Baron Health Care Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron Health Care Fund (the “Fund”) declined 10.00% (Institutional Shares), compared with the 7.43% decline for the Russell 3000 Health Care Index (the “Benchmark”) and the 16.10% decline for the S&P 500 Index. Since its inception (April 30, 2018), the Fund increased 15.00% on an annualized basis compared with the 11.96% gain for the Benchmark and the 10.91% gain for the S&P 500 Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Health Care Fund mentioned Novo Nordisk A/S (NYSE:NVO) and explained its insights for the company. Founded in 1923, Novo Nordisk A/S (NYSE:NVO) is a Bagsværd, Denmark-based multinational pharmaceutical company with a $239.2 billion market capitalization. Novo Nordisk A/S (NYSE:NVO) delivered a -5.96% return since the beginning of the year, while its 12-month returns are up by 0.37%. The stock closed at $105.32 per share on August 16, 2022.

Here is what Baron Health Care Fund has to say about Novo Nordisk A/S (NYSE:NVO) in its Q2 2022 investor letter:

“We added to our position in Novo Nordisk A/S, a leading global biopharmaceutical company headquartered in Denmark that specializes in treatments for diabetes, obesity, and other chronic diseases. We wrote about Novo Nordisk in last quarter’s letter. We continue to believe Novo Nordisk’s diabetes and anti-obesity franchise will drive attractive revenue and earnings growth for many years to come. We think both Novo Nordisk and competitor Eli Lilly and Company(which we also own in the Fund) can be successful in these large markets.”

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Our calculations show that Novo Nordisk A/S (NYSE:NVO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Novo Nordisk A/S (NYSE:NVO) was in 31 hedge fund portfolios at the end of the second quarter of 2022, compared to 28 funds in the previous quarter. Novo Nordisk A/S (NYSE:NVO) delivered a -0.96% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on Novo Nordisk A/S (NYSE:NVO) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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