Baron Partners Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Partners Fund returned 42.87% (institutional shares). In comparison, the benchmark S&P 500 Index was up 12.15%, while the Russell Midcap Growth Index was up 19.02%. You should check out Baron Partners 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, the fund highlighted a few stocks and GoodRx Holdings Inc. (NASDAQ:GDRX) is one of them. GoodRx Holdings Inc. (NASDAQ:GDRX) is a healthcare company. In the last three months, GoodRx Holdings Inc. (NASDAQ:GDRX) stock lost 17.1% and on March 18th it had a closing price of $36.88. Here is what the fund said:
“GoodRx Holdings, Inc. operates the nation’s largest online platform providing users free access to drug pricing information and pharmacy discounts. Its shares gave back some of their heady post-IPO run after Amazon’s announcement that it has entered the online pharmacy space. Although Amazon is a formidable rival, we believe its success is not assured as its participation is limited to the low-penetration mail order segment of the market. GoodRx has the advantages of the leading brand, best pricing, telehealth tie-in, and nascent opportunities in drug manufacturer referrals.”
At third quarter’s end, a total of 41 of the hedge funds tracked by Insider Monkey were long this stock, a change of 41 from the second quarter of 2020 (see the chart here). Our calculations showed that GoodRx Holdings Inc. (NASDAQ:GDRX) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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.
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.