Baron Discovery Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Discovery Fund returned 25.54% (institutional shares). This was 4.07% lower than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’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, Baron Discovery Fund highlighted a few stocks and TherapeuticsMD Inc. (NASDAQ:TXMD) is one of them. TherapeuticsMD Inc. (NASDAQ:TXMD) is a pharmaceutical company. In the last three months, TherapeuticsMD Inc. (NASDAQ:TXMD) stock gained 28% and on February 2nd it had a closing price of $1.75. Here is what Baron Discovery Fund said:
“TherapeuticsMD, Inc. is a developer of hormone-based drugs for women’s health. It has three FDA approved drugs, all of which are being launched. Shares were down in the fourth quarter as the COVID-19 crisis hampered the company’s early launch efforts for all three drugs (similar to Esperion and other pharmaceutical companies that had the bad luck to gain product approval during the pandemic). Because the health crisis is merely delaying the product launches, we believe shares are drastically undervalued.”
Baron Discovery Fund has been a long time TherapeuticsMD Inc. (NASDAQ:TXMD) bull. In December 2020, we shared Baron Discovery Fund’s bullish ESPR’s thesis in this article.
In Q3 2020, the number of bullish hedge fund positions on TherapeuticsMD Inc. (NASDAQ:TXMD) stock increased by about 10% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in TherapeuticsMD’s growth potential. Our calculations showed that TherapeuticsMD Inc. (NASDAQ:TXMD) 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.