Baron Discovery Fund recently published its first-quarter commentary – a copy of which can be downloaded here. During the first quarter of 2021, the Baron Discovery Fund returned 7.5% (institutional shares). This was 2.59% higher 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 Q1 2021 Investor Letter, the fund highlighted a few stocks and Silk Road Medical Inc (NASDAQ:SILK) is one of them. Silk Road Medical Inc (NASDAQ:SILK) is a medical device company. In the last three months, Silk Road Medical Inc (NASDAQ:SILK) stock lost 22% and on May 14th it had a closing price of $47.95. Here is what the fund said:
“Silk Road Medical, Inc. designs and manufactures medical devices used to clear plaque from the carotid arteries of patients at high risk of stroke. The device is minimally invasive, and we believe that over 80% of the current procedure market, which is about $1 billion ($650 million in currently approved applications), could shift to Silk Road’s device over the next few years. Shares were down in the first quarter as it posted fourth quarter results and 2021 revenue guidance that were below consensus expectations. This disappointed some investors who had bid up the shares prior to earnings in anticipation of a COVID recovery bump in 2021. We still believe that procedure volume will normalize in 2021 as COVID subsides, and that Silk Road will benefit immensely. We think that management is rightly being conservative given the limited reopening data it had at the time of the earnings call. However, we are also extremely excited that in the fourth quarter the company filed a PMA application for FDA approval of a standard risk indication for its device, which would access the remaining $350 million of its core $1 billion market. It is also a big positive that 1,800 total surgeons had been trained by year end 2020, with 350 trained in 2020 alone, and Silk Road now has accounts in over 800 hospitals. We still believe that the company should be able to grow revenues from $75 million in 2020 to hundreds of millions over the next five years as it converts this standard surgical market to the minimally invasive Silk Road device.”
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Baron Discovery Fund has been a long time Silk Road Medical Inc (NASDAQ:SILK) bull. In December 2020, we shared Baron Discovery Fund’s bullish SILK’s thesis in this article.
Our calculations showed that Silk Road Medical Inc (NASDAQ:SILK) 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.
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Disclosure: None. This article is originally published at Insider Monkey.
