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 Tactile Systems Technology Inc (NASDAQ:TCMD) is one of them. Tactile Systems Technology Inc (NASDAQ:TCMD) is a medical technology company that develops and provides medical devices for the treatment of chronic diseases at home. In the last three months, Tactile Systems Technology Inc (NASDAQ:TCMD) stock gained 55.2% and on February 2nd it had a closing price of $57.23. Here is what Baron Discovery Fund said:
“We sold our investment in Tactile Systems Technology, Inc. in the quarter. Tactile’s devices use pneumatic compression to manage lymphedema (swelling in the extremities). While we believe that the company will ultimately return to a reasonable growth profile, we felt that we had more promising investments in the medical device sector.”
In Q3 2020, the number of bullish hedge fund positions on Tactile Systems Technology Inc (NASDAQ:TCMD) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in TCMD’s growth potential. Our calculations showed that Tactile Systems Technology Inc (NASDAQ:TCMD) 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.