Del Principe O’Brien Financial Advisors recently released its March 2021 investor letter – a copy of which is available for download here. You should check out Del Principe O’Brien Financial Advisors top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Biogen Inc. (NASDAQ:BIIB) is one of them. Biogen Inc. (NASDAQ:BIIB) is a biotechnology company. In the last three months, Biogen Inc. (NASDAQ:BIIB) stock gained 6.6% and on April 7th it had a closing price of $268.02. Here is what the fund said:
“Positioning themselves as “pioneers in neuroscience” and “one of the world’s first global biotechnology companies,” Biogen, Inc., develops and manufactures therapies for treating neurological and neurodegenerative diseases and other serious medical conditions, including multiple sclerosis (MS), non-Hodgkin’s lymphoma, chronic lymphocytic leukemia, and plaque psoriasis. The company has achieved strong profitability thanks to its oncology collaboration with pharmaceutical company Roche and its diversified treatments for MS. Having a portfolio that serves specialty markets and a product pipeline focused on neurological therapies has created a wide economic moat for the company – a quality we like to see.
There have been some recent hang-ups in the approval process for a new drug in the Biogen pipeline to treat Alzheimer’s disease, which affected its stock price. However, we do not believe the delay diminishes the company’s intrinsic value. Some analysts have voiced concern that a new balance of power in the Senate may result in changes to U.S. drug policy that would affect the bottom lines of pharmaceutical companies. However, at this point (though we have no crystal ball, of course), we anticipate only moderate changes that are not likely to affect a company like Biogen in any major way.
Since Biogen is a biotech company with a strong specialty pharmaceutical portfolio and a promising pipeline, they may present a major merger opportunity for another big pharmaceutical company. We are excited about this investment and look forward to monitoring Biogen’s value in the coming months and years.”
In Q4 2020, the number of bullish hedge fund positions on Biogen Inc. (NASDAQ:BIIB) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Biogen’s growth potential. Our calculations showed that Biogen Inc. (NASDAQ:BIIB) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.