Establishment Labs Holdings (ESTA) Fell on Weaker Global Demand
Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund (Institutional Shares) returned 22.58% outperforming the 18.66% return for the Russell 2000 Growth Index. In Q4, the fund returned 12.44% compared to a 12.75% return for the index. Since its inception, investors in the fund have earned an annualized return of 12.42%, resulting in a more than tripled investment. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund featured stocks such as Establishment Labs Holdings Inc. (NASDAQ:ESTA) in the fourth quarter 2023 investor letter. Headquartered in Alajuela, Costa Rica, Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology company. On February 6, 2024, Establishment Labs Holdings Inc. (NASDAQ:ESTA) stock closed at $38.22 per share. One-month return of Establishment Labs Holdings Inc. (NASDAQ:ESTA) was 20.64%, and its shares lost 42.93% of their value over the last 52 weeks. Establishment Labs Holdings Inc. (NASDAQ:ESTA) has a market capitalization of $1.039 billion.
Baron Discovery Fund stated the following regarding Establishment Labs Holdings Inc. (NASDAQ:ESTA) in its fourth quarter 2023 investor letter:
"Establishment Labs Holdings Inc. (NASDAQ:ESTA) sells next-generation breast implants that have meaningfully lower safety risks compared to competitor products. The company’s implants have captured significant share in many international markets, and the upcoming U.S. and China launches will more than double the addressable market. Shares fell in the quarter. The near-term issue is that breast augmentations are expensive discretionary cash-pay procedures, and macroeconomic headwinds are leading to weaker global demand. Compounding this, distributors in Asia-Pacific are working down inventory as they run leaner in uncertain economic times. This weakness also creates uncertainty as to whether Establishment Labs can achieve certain milestones needed to access additional tranches of debt, absent which the company will likely need to raise capital. Longer term, we think Establishment Labs will capture significant share in the U.S. and China and will launch a unique minimally invasive implant product that will accelerate revenue growth and profitability."
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Establishment Labs Holdings Inc. (NASDAQ:ESTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Establishment Labs Holdings Inc. (NASDAQ:ESTA) at the end of third quarter which was 15 in the previous quarter.
We discussed Establishment Labs Holdings Inc. (NASDAQ:ESTA) in another article and shared the list of best cosmetic surgery and aesthetics stocks to buy.. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
