Baron Funds, an investment management firm, published its fourth quarter 2020 “Baron Asset Fund” investor letter – a copy of which can be downloaded here. A return of 15.14% was recorded by its Retail Shares, and 15.21% by its Institutional Shares in the fourth quarter of 2020, both below its Russell Midcap Growth Benchmark that delivered a 19.02% return but above its S&P 500 index that was up by 12.15% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron Funds, in their Q4 2020 investor letter, mentioned DexCom, Inc. (NASDAQ: DXCM) and emphasized their views on the company. DexCom, Inc. is a San Diego, California-based continuous glucose monitoring system manufacturer that currently has a $34.6 billion market capitalization. Since the beginning of the year, DXCM delivered a -2.68% return, while its 12-month gains are still up by 52.33%. As of March 22, 2021, the stock closed at $359.82 per share.
Here is what Baron Funds has to say about DexCom, Inc. in their Q4 2020 investor letter:
“DexCom, Inc. sells a continuous glucose monitoring device used by diabetics. The stock performed well early this year, but fell during the quarter on concerns about competition from Abbott Laboratories, which received regulatory approval to market its third generation Libre device in Europe. We continue to believe that the market DexCom is addressing will be large enough to support two different players, and we believe that there is significant value in its new product pipeline.”
Our calculations show that DexCom, Inc. (NASDAQ: DXCM) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, DexCom, Inc. was in 52 hedge fund portfolios, compared to 58 funds in the third quarter. DXCM delivered a 1.58% return in the past 3 months.