In today’s briefing:
- Diamond Hill Long-Short Fund 2022 Market Commentary
- Ironwood Pharmaceuticals (IRWD US): Brand Leadership of Linzess Continues; Pipeline Advances
- Pre-IPO Mega Genomics – Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt
- Diamond Hill All Cap Select Fund Q1 2022 Market Commentary
Diamond Hill Long-Short Fund 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- The Diamond Hill Long-Short Fund’s returns were just about flat—slightly positive— in Q1.
- After a strong rebound in 2021, global GDP growth is expected to moderate in 2022.
- From current levels, equity market returns over the next five years are likely to be below historical averages.
Ironwood Pharmaceuticals (IRWD US): Brand Leadership of Linzess Continues; Pipeline Advances
- Ironwood Pharmaceuticals, Inc (IRWD US)’s sole marketed drug Linzess is the #1 prescribed branded treatment in the U.S. for adults with IBS-C/CIC with ~4M unique patients since launch.
- First commercialized in December 2012, Linzess achieved blockbuster drug status in 2021. The earliest licensed entry of any generic Linzess in the U.S. is expected only in March 2029.
- The company’s potential drug candidate IW-3300 is in phase 1 trial for interstitial cystitis/bladder pain syndrome (IC/BPS). Recently, Ironwood has shared positive findings from the study.
Pre-IPO Mega Genomics – Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt
- Mega should establish core competitiveness via entering hospital market and being recognized by hospitals. It’s not a long-term solution to exploit the market by mainly relying on Meinian.
- Although Mega’s competitive advantage in the channels is still more obvious due to Meinian, it is actually a double-edged sword, especially when Meinian is in financial difficulty.
- Without Meinian, whether Mega can develop independently is a question mark. In terms of valuation, BGI and Berry could be comparable companies, and Mega’s valuation could be lower than Berry.
Diamond Hill All Cap Select Fund Q1 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- During a volatile quarter, the Diamond Hill All Cap Select Fund held up meaningfully better than the Russell 3000 Index.
- After a strong rebound in 2021, global GDP growth is expected to moderate in 2022.
- While the year-to-date pullback in equity markets has created some investment opportunities, broad market valuations remain above historical averages.
Before it’s here, it’s on Smartkarma
