Does Arrowhead Pharmaceuticals (ARWR) Have a Long Runway for Growth?

Baron Funds, an investment management company, released its “Baron Opportunity Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund outperformed the broader market and increased by 17.96% (Institutional Shares) compared to a 13.85% return for the Russell 3000 Growth Index and a 7.50% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Opportunity Fund highlighted stocks like Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) in the first quarter 2023 investor letter. Headquartered in Pasadena, California, Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is a biopharmaceutical company that develops medicines for the treatment of intractable diseases. On May 9, 2023, Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) stock closed at $40.47 per share. One-month return of Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) was 41.70%, and its shares gained 39.79% of their value over the last 52 weeks. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) has a market capitalization of $4.326 billion.

Baron Opportunity Fund made the following comment about Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) in its Q1 2023 investor letter:

“Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR), a biotechnology company specializing in RNA interference (RNAi) medications to treat a variety of diseases, detracted from performance. The company has lacked major wins in recent years, while also tallying some losses. Management’s late-stage drug licensing efforts to drive upfront and running royalties to bolster its balance sheet and ensure a longer cash runway have also pressured shares. Reinvigorating the company’s strategic story remains a key consideration for Arrowhead going forward. Last year, we reduced our portfolio weighting in Arrowhead but decided to maintain a foothold position. We believe Arrowhead’s efforts to target RNAi to the lungs will open a new therapeutic area of exploration. In our view, this initiative may lead to RNAi economies of scale, allow for an expansion of pipeline and collaboration opportunities, and generate a long runway for growth.”

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Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) at the end of the fourth quarter which was 25 in the previous quarter.

We discussed Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) in another article and shared the list of high growth healthcare stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.