Baron Discovery Fund Sold ACV Auctions (ACVA) Due to the Current Valuation

Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund (Institutional Shares) returned 22.58% outperforming the 18.66% return for the Russell 2000 Growth Index. In Q4, the fund returned 12.44% compared to a 12.75% return for the index. Since its inception, investors in the fund have earned an annualized return of 12.42%, resulting in a more than tripled investment. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Discovery Fund featured stocks such as ACV Auctions Inc. (NASDAQ:ACVA) in the fourth quarter 2023 investor letter. Headquartered in Buffalo, New York, ACV Auctions Inc. (NASDAQ:ACVA) provides a digital marketplace where buyers and sellers can connect for the online auction of wholesale vehicles. On February 6, 2024, ACV Auctions Inc. (NASDAQ:ACVA) stock closed at $14.14 per share. One-month return of ACV Auctions Inc. (NASDAQ:ACVA) was -2.55%, and its shares gained 36.22% of their value over the last 52 weeks. ACV Auctions Inc. (NASDAQ:ACVA) has a market capitalization of $2.283 billion.

Baron Discovery Fund stated the following regarding ACV Auctions Inc. (NASDAQ:ACVA) in its fourth quarter 2023 investor letter:

“We trimmed our position in ACV Auctions Inc. (NASDAQ:ACVA) during the quarter. While we continue to believe in the company’s longer-term growth opportunities, we believe the current valuation reflects the challenging near-term economic environment.”

A row of used cars with shoppers inspecting them on a lot.

ACV Auctions Inc. (NASDAQ:ACVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held ACV Auctions Inc. (NASDAQ:ACVA) at the end of third quarter which was 29 in the previous quarter.

We discussed ACV Auctions Inc. (NASDAQ:ACVA) in another article and shared the list of most promising car stocks according to analysts. In addition, please check out our hedge fund investor letters Q4 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.