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 Establishment Labs Holdings Inc. (NASDAQ:ESTA) in the second quarter 2024 investor letter. Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology company. The one-month return of Establishment Labs Holdings Inc. (NASDAQ:ESTA) was -3.00%, and its shares lost 16.89% of their value over the last 52 weeks. On August 23, 2024, Establishment Labs Holdings Inc. (NASDAQ:ESTA) stock closed at $45.65 per share with a market capitalization of $1.276 billion.
Baron Discovery Fund stated the following regarding Establishment Labs Holdings Inc. (NASDAQ:ESTA) 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. Establishment Labs Holdings Inc. (NASDAQ:ESTA) is up over 75% this year (we believe it is close to receiving FDA approval so that it can launch implants in the U.S.). Last year Establishment Labs was down over 60%.”
A close-up of a silicone gel-filled breast implant with a Motiva logo in the background.
Establishment Labs Holdings Inc. (NASDAQ:ESTA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Establishment Labs Holdings Inc. (NASDAQ:ESTA) at the end of the second quarter which was 20 in the previous quarter. In the second quarter, Establishment Labs Holdings Inc.’s (NASDAQ:ESTA) revenue totaled $44.1 million, marking an 18.7% increase from the previous quarter. While we acknowledge the potential of Establishment Labs Holdings Inc. (NASDAQ:ESTA) 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.