U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    45,127.27
    -2,616.85 (-5.48%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Is Silk Road Medical (SILK) a Smart Long-term Buy?

  • Oops!
    Something went wrong.
    Please try again later.
Alex Smith
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Baron Discovery Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Discovery Fund returned 18.83% (institutional shares). This was 11.67% better than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and Silk Road Medical Inc (NASDAQ:SILK) is one of them. Silk Road Medical Inc (NASDAQ:SILK) produces and distributes surgical equipment. Year-to-date, Silk Road Medical Inc (NASDAQ:SILK) stock gained 37.5% and on December 1st it had a closing price of $55.51. Here is what Baron Discovery Fund said:

"Silk Road Medical, Inc. designs and manufactures medical devices used to clear plaque from the carotid arteries of patients at high risk of stroke. The device is minimally invasive, and we believe that over 80% of the current procedure market, which is about $1 billion ($650 million in currently approved applications), could shift to Silk Road’s device over the next few years. This has been the pattern when other forms of minimally invasive arterial surgery have entered the market. Shares performed well in the quarter as surgical procedures have started to return to more normalized volumes following the virtual shutdown of elective procedures during the depth of the COVID-19 pandemic in the second quarter. Interviews that we have conducted with surgeons and other industry experts indicate that procedure volumes may be back to 65% to 80% of normalized pre-COVID levels. This has validated our strategy of continuing to invest in medical technology companies that were hurt during the pandemic, with the expectation that the environment will ultimately turn around for the better. We believe that companies like Silk Road that have unique technologies and large markets to exploit will accelerate their growth over the next few years as the world begins to return to normal."

Top General Surgery Residency Programs in US
Top General Surgery Residency Programs in US

Pixabay/Public Domain

In Q2 2020, the number of bullish hedge fund positions on Silk Road Medical Inc (NASDAQ:SILK) stock increased by about 67% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in SILK's growth potential. Our calculations showed that Silk Road Medical Inc (NASDAQ:SILK) 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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. You can subscribe to our free daily newsletter on our website:

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