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Here’s Why Nevro Corp. (NVRO) Landed in Alger Weatherbie’s Top Detractor List

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Alger, an investment management firm, published its “Alger Weatherbie Specialized Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. During the quarter, the largest portfolio sector weightings were Information Technology and Health Care. The largest sector overweight was Financials. Class A shares of the Alger Weatherbie Specialized Growth Fund underperformed the Russell 2500 Growth Index during the first quarter of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Alger Weatherbie Specialized Growth Fund, in their Q1 2021 investor letter, mentioned Nevro Corp. (NYSE: NVRO) and shared their insights on the company. Nevro Corp. is a Redwood City, California-based medical device company that currently has a $5.1 billion market capitalization. Since the beginning of the year, NVRO delivered a -14.30% return, while its 12-month gains are up by 29.03%. As of April 19, 2021, the stock closed at $148.35 per share.

Here is what Alger Weatherbie Specialized Growth Fund has to say about Nevro Corp. in their Q1 2021 investor letter:

"Nevro Corp. was among the top detractors from performance. Nevro provides spinal cord stimulation (SCS) devices in the U.S. and internationally for patients suffering from chronic pain. The global SCS market exceeds $2 billion and has been growing as a result of increased investment by the industry. Nevro has been expanding its sales force to boost its penetration in the back -pain market. In December and January, Covid-19 cases surged in the U.S., causing elective surgical procedures to be suspended in order to concentrate health care staff on virus patients. Nearly 200 scheduled U.S. permanent Nevro implant procedures were cancelled, resulting in lower-than-expected revenue guidance for the f1rst quarter of this year. Nevro shares underperformed during the quarter despite pent-up demand for the company's devices."

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Our calculations show that Nevro Corp. (NYSE: NVRO) 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, Nevro Corp. was in 30 hedge fund portfolios, compared to 34 funds in the third quarter. NVRO delivered a -16.51% 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.