Baron Funds, an investment management firm, released its “Baron Technology Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the second quarter, the Baron Technology Fund® experienced a 3.89% decline in its Institutional Shares. Despite this decrease, it outperformed the MSCI ACWI Information Technology Index, which saw a steeper decline of 6.16%. However, the Fund slightly underperformed the broader S&P 500 Index, which exhibited a 3.27% decline. Looking at the year-to-date period, the Fund has shown a positive return of 37.34%, surpassing both indexes. The MSCI ACWI Information Technology Index yielded 28.47% while the S&P 500 returned 13.07%. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Baron Technology Fund mentioned Indie Semiconductor, Inc. (NASDAQ:INDI) and explained its insights for the company. Indie Semiconductor, Inc. (NASDAQ:INDI) is an Aliso Viejo, California-based pure-play automotive fabless semiconductor company with a $819.7 million market capitalization. Indie Semiconductor, Inc. (NASDAQ:INDI) delivered a -12.35% return since the beginning of the year, while its 12-month returns are down by -34.32%. The stock closed at $5.11 per share on November 6, 2023.
Here is what Baron Technology Fund has to say about Indie Semiconductor, Inc. (NASDAQ:INDI) in its Q3 2023 investor letter:
“Indie Semiconductor, Inc. is a fabless designer, developer, and marketer of automotive semiconductors for advanced driver assistance systems and connected-car user experience and electrification applications. Shares fell during the quarter due to investor concerns that near-term automotive semiconductor demand will face headwinds because of excess inventory in the automotive semiconductor supply chain, combined with third quarter revenue guidance that slightly missed consensus expectations due to a customer slightly delaying the launch of a new vehicle model where indie had secured a design win (so delayed, not lost sales). As indie steadily ramps new product and design wins into production, we are confident the company will achieve its targeted model of profitability by year end, while effectively doubling revenues as it delivers on its $4.3 billion and growing strategic backlog. We believe indie has the potential to grow from its $200 million revenue run rate today to its targeted $500 million by 2025 and $1 billion by 2028. In the years ahead, indie should benefit as it develops differentiated, highly integrated, energy-efficient products, while the automotive semiconductor vertical remains highly attractive over the long term.”
A worker assembling the inner circuitry of a semiconductor product.
Our calculations show that Indie Semiconductor, Inc. (NASDAQ:INDI) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Indie Semiconductor, Inc. (NASDAQ:INDI) was in 24 hedge fund portfolios at the end of the second quarter of 2023, compared to 30 funds in the previous quarter. Indie Semiconductor, Inc. (NASDAQ:INDI) delivered a -39.17% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
