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Baron Funds, an investment management company, has released its fourth quarter 2022 investor letter for the ‘Baron Healthcare Fund’. A copy of the same can be downloaded here. In the fourth quarter, the fund grew 9.08% (institutional equities) compared to 11.54% for the Russell 3000 Healthcare Index and 7.56% for the S&P 500 Index. The fund is down 16.90% in 2022, while the Russell 3000 Healthcare Index is down 6.10% and the S&P 500 Index is down 18.11%. Factors such as cash exposure in the luxury market, unfavorable stock selection, and differences in sub-industry exposures caused the fund to underperform in the quarter relative to the benchmark. Plus, check out the fund’s top five holdings to see our best picks for 2022.
Baron Funds highlighted stocks such as Option Care Health, Inc. (NASDAQ:OPCH) in its fourth quarter 2022 investor letter. Option Care Health, Inc. (NASDAQ:OPCH), headquartered in Bannockburn, Illinois, provides home infusion services. On January 30, 2023, Option Care Health, Inc. (NASDAQ:OPCH) stock closed at $28.27 per share. His one-month return for Option Care Health, Inc. (NASDAQ:OPCH) is -6.05%, and the company’s stock has risen 20.97% over the past 52 weeks. Option Care Health, Inc. (NASDAQ:OPCH) has a market capitalization of $5,142 million.
Baron Funds made the following comments about Option Care Health, Inc. (NASDAQ:OPCH) in its fourth quarter 2022 investor letter:
“we, Option Care Health Co., Ltd. (NASDAQ:OPCH) is the largest independent player in the US $15 billion home and alternative facility injection market. Option Care believes it is well positioned to capitalize on the ongoing transition to lower cost medical facilities and the surge in new specialty drug treatments. Home IVs are 40% to 70% cheaper than hospital IVs. With more than 150 locations, Option Care’s footprint allows us to serve approximately 96% of the US population in a market growing at 5% to 7% annually. The company enjoys a well-diversified portfolio of treatments and provider relationships, all large payers and in-network status, with no customer concentration, and Medicare now covers home infusions. direct reimbursement risk from the government is low. Given its geographic reach and therapeutic expertise, the company is guaranteed to have a seat at the table discussing new innovative episodes or fully human models with payers. , whose size and scale provide purchasing power while facilitating early access and priority supply arrangements for newly approved medicines. Management believes the company can continue to deliver his high-single-digit organic earnings growth and his EBITDA growth in his mid-teens. There are also significant growth opportunities through M&A. The company has a strong track record in acquisitions and acquisition consolidation, with 45% of the market still made up of regional and local providers, so there are meaningful consolidation opportunities. “
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Option Care Health, Inc. (NASDAQ:OPCH) isn’t on the list of the 30 most popular hedge funds. According to our database, 36 hedge fund portfolios held his Option Care Health, Inc. (NASDAQ:OPCH) at the end of the third quarter, up from 32 last quarter.
We covered Option Care Health, Inc. (NASDAQ:OPCH) in a separate article and shared Stanley Druckenmiller’s list of health care stocks to invest in. Additionally, for investor letters from hedge funds and other leading investors, visit the Hedge Fund Investor Letters Q4 2022 page.
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Disclosure: None. This article was originally published on Insider Monkey.
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