Why Flexion Therapeutics (FLXN) Stock is a Compelling Investment Case

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Miller Value Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 13.01% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 8.93% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Miller Value Partners highlighted a few stocks and Flexion Therapeutics Inc (NASDAQ:FLXN) is one of them. Flexion Therapeutics Inc (NASDAQ:FLXN) is a biopharmaceutical company. Year-to-date, Flexion Therapeutics Inc (NASDAQ:FLXN) stock lost 42.1% and on October 30th it had a closing price of $11.99. Here is what Miller Value Partners said:

“Flexion Therapeutics (FLXN) saw a 20.8% decline during the period. The company announced 2Q results that were in-line with their preannounced numbers. 2Q20 net sales of $15.4M was above consensus of $10M. The company plans to recommence manufacturing of Zilretta in 4Q20. The company now expects total operating expenses for 2020 will be between $172-182M up slightly from $167-177M. The company announced the dosing of its first patient in a second dose cohort of a Phase I trial for FX201, their proprietary anti-IL_1Ra-based gene therapy candidate for the treatment of osteoarthritis.”

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In June, we published an article revealing Miller Value Partners bullish investment thesis on Flexion Therapeutics Inc (NASDAQ:FLXN) stock in its Q1 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Flexion Therapeutics Inc (NASDAQ:FLXN).

In Q1 2020, the number of bullish hedge fund positions on Flexion Therapeutics Inc (NASDAQ:FLXN) stock decreased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Flexion Therapeutics’s growth potential. Our calculations showed that Flexion Therapeutics Inc (NASDAQ:FLXN) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.