Baron Funds, an investment management company, released its “Baron Discovery Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Institutional Shares) declined 7.78% underperforming the 2.92% return for the Russell 2000 Growth Index. The lion’s share of negative attribution and 6.52% of negative performance of the fund during the quarter were attributed to the ten worst-performing equities. The firm believes downward movements are more technically tied to macroeconomic issues and the trading environment and could quickly revert. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Baron Discovery Fund highlighted stocks like Silk Road Medical, Inc (NASDAQ:SILK) in its Q2 2024 investor letter. Silk Road Medical, Inc (NASDAQ:SILK) is a medical device company that offers products for the treatment of carotid artery disease. The one-month return of Silk Road Medical, Inc (NASDAQ:SILK) was 0.70%, and its shares gained 34.84% of their value over the last 52 weeks. On August 22, 2024, Silk Road Medical, Inc (NASDAQ:SILK) stock closed at $27.21 per share with a market capitalization of $1.106 billion.
Baron Discovery Fund stated the following regarding Silk Road Medical, Inc (NASDAQ:SILK) in its Q2 2024 investor letter:
“The Health Care sector was not all bad. During the year, we have seen many of our Health Care holdings rebound, showing that long-term fundamentals rather than short-term trading volatility is what truly matters. Silk Road Medical, Inc (NASDAQ:SILK), a manufacturer of devices to provide minimally invasive treatment of carotid arteries to prevent strokes, agreed in June 2024 to be acquired by Boston Scientific (right on the heels of Boston Scientific’s March 2024 acquisition of Axonics, Inc., which we also owned). Last year Silk Road was down over 75%. This year it is up over 120% and was up 47.8% in the second quarter.”
A doctor using a Lumivascular platform to get a closer look at the patient’s peripheral arterial disease.
Silk Road Medical, Inc (NASDAQ:SILK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Silk Road Medical, Inc (NASDAQ:SILK) at the end of the second quarter which was 27 in the previous quarter. While we acknowledge the potential of Silk Road Medical, Inc (NASDAQ:SILK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q2 2024 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.