Baron Funds, an investment management firm, released its “Baron Focused Growth Fund” first quarter 2023 investor letter, a copy of which can be downloaded here. During the quarter ending on March 31, 2023, the Fund’s Institutional Shares exhibited a notable increase of 14.49%. This remarkable performance can be attributed to the resilience and robust demand witnessed by companies held within the Fund’s portfolio. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q1 2023 investor letter, Baron Focused Growth Fund mentioned MGM Resorts International (NYSE:MGM) and explained its insights for the company. Founded in 1986, MGM Resorts International (NYSE:MGM) is a Las Vegas, Nevada-based hospitality and entertainment company with a $15.6 billion market capitalization. MGM Resorts International (NYSE:MGM) delivered a 28.60% return since the beginning of the year, while its 12-month returns are up by 54.28%. The stock closed at $43.72 per share on June 15, 2023.
Here is what Baron Focused Growth Fund has to say about MGM Resorts International (NYSE:MGM) in its Q1 2023 investor letter:
“In the first quarter, we also re-initiated a position in MGM Resorts International (NYSE:MGM), a casino company with properties in the U.S. and Macau. The company continues to see strong growth in Las Vegas and continued improvement in Macau, with increased market share despite macroeconomic concerns due to investments made during the pandemic. MGM has continued to use its cash flow to repurchase shares and recently increased its share repurchase authorization, a sign it continues to see value in its stock. Its strong balance sheet and net cash position should give it flexibility on the acquisition front should something become available at the right price. At current levels, we believe investors are getting its digital platform, BetMGM, as well as new casino licenses in Japan and New York for free, all of which could result in as much as a 50% increase in cash flow from current levels over time. The stock declined 25% last year, and we believe its valuation and growth prospects remain attractive at current levels.”
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Our calculations show that MGM Resorts International (NYSE:MGM) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. MGM Resorts International (NYSE:MGM) was in 54 hedge fund portfolios at the end of the first quarter of 2023, compared to 48 funds in the previous quarter. MGM Resorts International (NYSE:MGM) delivered a 4.53% return in the past 3 months.
Earlier this year, we also shared another fund’sviews on MGM Resorts International (NYSE:MGM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
