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 Vertex Pharmaceuticals Inc (NASDAQ:VRTX) is one of them. Vertex Pharmaceuticals Inc (NASDAQ:VRTX) is a biopharmaceutical company. Year-to-date, Vertex Pharmaceuticals Inc (NASDAQ:VRTX) stock gained 6.6% and on December 29th it had a closing price of $233.49. Here is what Alger Spectra Fund said:
“Vertex Pharmaceuticals has become the world’s leading cystic fibrosis company by introducing the first drug that treats the underlying disease as opposed to just the symptoms. A handful of genetic abnormalities account for the bulk of cystic fibrosis patients. Vertex’s treatment targets these abnormalities and allows genes associated with the disorder to function more normally. Last fall, the FDA approvedTrikafta, a combination of three drugs that target genetic defects. Despite recent positive revenue and earnings surprises and the company raising its forward guidance, the stock price declined during the quarter, perhaps because of general pharmaceutical pricing risk as the presidential election approaches. While the lifesaving capability of Vertex’s products is reflected in high prices, we note that the pricing of orphan drugs has historically not been targeted by elected officials.”
In Q3 2020, the number of bullish hedge fund positions on Vertex Pharmaceuticals Inc (NASDAQ:VRTX) stock increased by about 2% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Vertex’s growth potential. Our calculations showed that Vertex Pharmaceuticals Inc (NASDAQ:VRTX) 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.