Wasatch Global on Sangamo (SGMO): “We Remain Optimistic About its Future Prospects”

Wasatch Global Investors, an investment management firm, published its “Wasatch Ultra Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 4.69% was recorded by the fund’s investor class for the Q1 of 2021, trailing the benchmark, Russell 2000 Growth Index, that rose to 4.88% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Ultra Growth Fund, in its Q1 2021 investor letter, mentioned Sangamo Therapeutics, Inc. (NASDAQ: SGMO), and shared their insights on the company. Sangamo Therapeutics, Inc. is a Richmond, California-based biotechnology company that currently has an $1.5 billion market capitalization. Since the beginning of the year, SGMO delivered a -31.75% return, while its 12-month gains are up by 8.78%. As of May 11, 2021, the stock closed at $10.65 per share.

Here is what Wasatch Ultra Growth Fund has to say about Sangamo Therapeutics, Inc. in its Q1 2021 investor letter:

“Another weak stock in the Fund was Sangamo Therapeutics, Inc. (SGMO). Some investors may have been spooked by the resignation of Sangamo’s chief financial officer (CFO) after a tenure of less than one year. After conducting our own research, which included a conversation with the departing CFO, we believe the move was purely for personal reasons. Sangamo specializes in the treatment and cure of single-gene disorders. We remain optimistic about its future prospects, current partnerships and development pipeline— which includes gene therapy, in-vivo gene editing and ex-vivo genome medicine. (Current and future holdings are subject to risk.)”


Our calculations show that Sangamo Therapeutics, Inc. (NASDAQ: SGMO) 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, Sangamo Therapeutics, Inc. was in 20 hedge fund portfolios, compared to 28 funds in the third quarter. SGMO delivered a -27.00% return in the past 3 months.

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.