Baron Health Care Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Health Care Fund returned 17.1% (institutional shares). In comparison, the benchmark S&P 500 Index was up 12.15%, while the Russell 3000 Health Care Index was up 10.08%. You should check out Baron’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 Health Care Fund highlighted a few stocks and UnitedHealth Group Inc (NYSE:UNH) is one of them. UnitedHealth Group Inc (NYSE:UNH) is a health and well-being company. In the last three months, UnitedHealth Group Inc (NYSE:UNH) stock lost 2.6% and on February 17th it had a closing price of $326.86. Here is what Baron Health Care Fund said:
“UnitedHealth Group Incorporated is the largest insurer in the U.S. and a leading provider of health care, IT/analytics, and pharmacy benefit services. Shares rose on continued strong financial results. In-line and likely conservative 2021 guidance that incorporates a return to more normalized, pre-pandemic utilization levels was well received by investors as was the company’s reiteration of its long-term targets of 6%-9% top-line and 13%-16% EPS growth. We view UnitedHealth as a core holding that allows us to participate in the strong secular growth of the health care industry.”
In Q3 2020, the number of bullish hedge fund positions on UnitedHealth Group Inc (NYSE:UNH) stock decreased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in UnitedHealth’s growth potential. Our calculations showed that UnitedHealth Group Inc (NYSE:UNH) is ranked #26 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.