Baron Health Care Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Health Care Fund returned 17.1% (institutional shares). In comparison, the benchmark S&P 500 Index was up 12.15%, while the Russell 3000 Health Care Index was up 10.08%. You should check out Baron’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 Health Care Fund highlighted a few stocks and Vertex Pharmaceuticals Inc (NASDAQ:VRTX) is one of them. Vertex Pharmaceuticals Inc (NASDAQ:VRTX) is a biopharmaceutical company. In the last three months, Vertex Pharmaceuticals Inc (NASDAQ:VRTX) stock gained 0.5% and on February 17th it had a closing price of $214.85. Here is what Baron Health Care Fund said:
"Vertex Pharmaceutical Incorporated is a pharmaceutical company best known for its commercial products targeting cystic fibrosis. Share weakness in the quarter was due to the negative initial readout of a pipeline asset targeting alpha one antitrypsin disease, an inherited disorder that increases the chance of lung and liver disease. Given Vertex’s best-in-class growth profile and cash flow and upcoming catalyst flow, we retain long-term conviction in the name."
Earlier this month, we published an article revealing that Vertex Pharmaceuticals Inc (NASDAQ:VRTX) was one of the top 10 large-cap healthcare stocks to buy now.
In Q3 2020, the number of bullish hedge fund positions on Vertex Pharmaceuticals Inc (NASDAQ:VRTX) stock increased by about 2% from the previous quarter, so a number of other hedge fund managers believe in Vertex's growth potential. Our calculations showed that Vertex Pharmaceuticals Inc (NASDAQ:VRTX) 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. 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.