Here’s Why Rocket Pharmaceuticals (RCKT) Stock Suffered in Q1
Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The first quarter was difficult for the fund, as it failed to participate in the broader market rally and declined 3.69% compared to the 3.27% decline for the benchmark Russell 3000 Health Care Index and a 7.50% increase for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Health Care Fund highlighted stocks like Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) in the first quarter 2023 investor letter. Headquartered in Cranbury, New Jersey, Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) is a multi-platform biotechnology company. On May 17, 2023, Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) stock closed at $21.56 per share. One-month return of Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) was 16.23%, and its shares gained 115.82% of their value over the last 52 weeks. Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) has a market capitalization of $1.735 billion.
Baron Health Care Fund made the following comment about Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) in its Q1 2023 investor letter:
"Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) is a biotechnology company specializing in gene therapies for rare genetic diseases outside of oncology, including Danon disease, Fanconi’s anemia, lysosomal acid lipase deficiency, and Pyruvate kinase disorder. As a biotechnology stock without near-term news flow in a risk-off market, the share price suffered as a result of this duration risk. We expect treatments for the first three diseases to be commercially launched by 2025, which should generate substantial revenue. Short-term investor focus is on a pivotal trial design for Danon disease, as it represents the largest commercial opportunity of the three. Given our estimation of the high probability of positive free-cash-flow generation in coming years, coupled with the life-saving nature of Rocket’s therapies and the high unmet need, we are comfortable managing through present investment risk."
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Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) at the end of the fourth quarter which was 29 in the previous quarter.
We discussed Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) in another article and shared Baron Opportunity Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
