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Should You Retain Your Arrowhead Pharmaceuticals (ARWR) Position?

·3 min read

Baron Funds, an asset management firm, published its “Baron Health Care Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.58% was delivered by the fund’s institutional shares for the Q1 of 2021, below both its S&P 500 and Russell 3000 Health Care benchmarks that delivered a 6.17% and 2.14% returns respectively for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Baron Health Care Fund, in their Q1 2021 investor letter, mentioned Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR), and shared their insights on the company. Arrowhead Pharmaceuticals, Inc. is a Pasadena, California-based biopharmaceutical company that currently has a $7.9 billion market capitalization. Since the beginning of the year, ARWR delivered a 0.36% return, while its 12-month gains are up by 136.52%. As of April 29, 2021, the stock closed at $75.76 per share.

Here is what Baron Health Care Fund has to say about Arrowhead Pharmaceuticals, Inc. in their Q1 2021 investor letter:

"Arrowhead Pharmaceuticals, Inc. is a developer of RNAi-based therapeutics for a host of genetic disorders primarily focused on the liver with eventual planned expansion into treatments for the lung, muscle, and tumors. The stock declined in conjunction with the general market rotation from growth into value and the unwind in biotechnology stocks. There were no real fundamental events for Arrowhead in the quarter, and we retain conviction as we expect more significant activity later in the year."

10 Pharmacist Shortage Countries in Need of Pharmacists in 2017
10 Pharmacist Shortage Countries in Need of Pharmacists in 2017

Copyright: katrintimoff / 123RF Stock Photo

Our calculations show that Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) 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, Arrowhead Pharmaceuticals, Inc. was in 24 hedge fund portfolios, compared to 22 funds in the third quarter. ARWR delivered a -0.16% 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.