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Here’s Why ClearBridge Sold its BioMarin Pharmaceutical (BMRN) Position

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ClearBridge Investments, an investment management firm, published its “SMID Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge SMID Cap Growth Strategy outperformed in the first quarter as their preference for sturdy fundamentals and value-creating management teams provided ballast amid rising speculation in newly public risk assets favored on online message boards. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned BioMarin Pharmaceutical Inc. (NASDAQ: BMRN), and shared their insights on the company. BioMarin Pharmaceutical Inc. is a Novato, California-based biotechnology company that currently has a $14.1 billion market capitalization. Since the beginning of the year, BMRN delivered a -11.52% return, while its 12-month returns are down by -30.23%. As of June 01, 2021, the stock closed at $77.69 per share.

Here is what ClearBridge Investments has to say about BioMarin Pharmaceutical Inc. in its Q1 2021 investor letter:

"The Strategy closed out of five positions (including BioMarin). We sold BioMarin Pharmaceutical after a number of its clinical catalysts had played out."

Top Vaccine Producing Companies in the World
Top Vaccine Producing Companies in the World

Photo by National Cancer Institute on Unsplash

Our calculations show that BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, BioMarin Pharmaceutical Inc. was in 43 hedge fund portfolios, compared to 51 funds in the fourth quarter of 2020. BMRN delivered a 1.97% 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.

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks 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. You can subscribe to our free daily newsletter on our homepage.

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