“Illumina (ILMN) has two great growth opportunities ahead”


RiverPark Fund, an investment management firm, has published its letter to investors “RiverPark Large Growth Fund” for the second quarter of 2021 – a copy of which can be found downloaded here. The RiverPark Large Growth Fund (the “Fund”) returned 13.1% in the second quarter of 2021, while its benchmarks, the S&P 500 Total Return Index (“S&P”) were up 8%. , 5%, the Russell 1000 Growth Total Return Index (“RLG”) returned 11.9%, while the Russell 1000 Value Total Return Index returned 5.2%. You can check out the top 5 holdings of the fund to get an overview of their top bets for 2021.

In RiverPark Funds’ Q2 2021 letter to investors, the fund mentioned Illumina, Inc. (NASDAQ: ILMN) and discussed his position on the company. Illumina, Inc. Inc. is a San Diego, California-based biotechnology company that currently has a market capitalization of $ 72.5 billion. ILMN has returned 34.39% year-to-date, bringing its 12-month returns to 39.81%. The stock closed at $ 497.24 per share on August 6, 2021.

Here’s what RiverPark Funds has to say about Illumina, Inc. in its Q2 2021 letter to investors:

ILMN Shares were our last major contributor for the quarter, rebounding from a decline in March due to the FTC filing a complaint to block the company’s acquisition of Grail. In April, Illumina reported better than expected results and good prospects. ILMN revenue increased 27%, sequencing revenue increased 29%, instrument revenue increased 123%, and consumables increased 26%. Adjusted operating margin increased sequentially to 32.1% from 20.9% in 4Q20, significantly exceeding estimates. Management also increased its revenue growth forecast for the full year of 2021, from its previous growth of 17% to 20% (we previously wrote that we thought it conservative) to 25% to 28%.

We continue to view the company’s core genomics industry as offering one of the largest addressable markets we cover, and ILMN is the clear leader in innovation in sequencing and chip-based solutions for genetic analysis. With less than 0.02% of humans sequenced and 99% of variants discovered in the genome yet to be deciphered, Illumina, with just $ 3.5 billion in TTM revenue, is still in its infancy in which is potentially over $ 50 billion. Market opportunity for genetic analysis tools. With Illumina’s recent entry into the potentially even larger liquid biopsy market (screening for early-stage cancer via blood samples) through its acquisition of Grail, the company has two major growth opportunities ahead. . “

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Based on our calculations, Illumina, Inc. (NASDAQ: ILMN) was unable to land a spot on our list of the 30 most popular stocks among hedge funds. ILMN was in 52 hedge fund portfolios at the end of the first quarter of 2021, compared to 45 fund in the fourth quarter of 2020. Illumina, Inc. (NASDAQ: ILMN) has generated a return of 29.51% in the past 3 months.

The reputation of hedge funds as savvy investors has been tarnished over the past decade, as their hedged returns could not keep up with the unhedged returns of stock indices. Our research has shown that small cap hedge fund stock selection managed to beat the market by double digits every year between 1999 and 2016, but the margin for outperformance has shrunk in recent years. Nonetheless, we were still able to identify in advance a select group of hedge funds that have outperformed S&P 500 ETFs by 115 percentage points since March 2017 (see details here). We were also able to identify in advance a select group of hedge funds that underperformed the market by 10 percentage points per year between 2006 and 2017. Interestingly, the margin of underperformance of these stocks has increased in recent years. Investors who are long in the market and short on these stocks would have reported more than 27% per year between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, the pet market is growing at an annual rate of 7% and is expected to reach $ 110 billion in 2021. So we look at the 5 best stocks for animal lovers. We go through lists like the 10 best battery stocks to choose the next Tesla which will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to equity pitches at hedge fund conferences. You can subscribe to our free daily newsletter at our home page.

Disclosure: none. This article was originally published on Monkey initiate.

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Shawn Beecher

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