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Is There Now An Opportunity In Abiomed (ABMD) Stock?

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Alex Smith
·2 min read
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Touchstone Sands Capital Institutional Growth Fund recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -9.45% for the quarter, outperforming its benchmark, the Russell 1000 Growth Index which returned -14.10% in the same quarter. You should check out Touchstone Sands Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Touchstone Sands Capital highlighted a few stocks and Abiomed Inc (NASDAQ:ABMD) is one of them. Abiomed is a manufacturer of medical implant devices. Year-to-date, ABMD stock gained 8.2% and on May 14th it had a closing price of $184.27. Its market cap is of $8.3 billion. Here is what Touchstone Sands Capital said:

"The Fund sold Abiomed in March to make room for a new business. We continue to have confidence that Abiomed’s Impella device can become more widely adopted over time for severe cardiac failure. However, with the recent setbacks, this will likely take longer than originally expected, and will be more reliant on new clinical data. Given the market dislocations caused by the coronavirus outbreak, we believe the business’s opportunity cost is too high. We always viewed Abiomed as an emerging franchise with a wide cone of outcomes, and managed this risk in the Fund through a small portfolio weight."

In Q4 2019, the number of bullish hedge fund positions on ABMD stock increased by about 46% from the previous quarter (see the chart here).

Disclosure: None. This article is originally published at Insider Monkey.