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 MSCI Inc (NYSE:MSCI) and explained its insights for the company. Founded in 1969, MSCI Inc (NYSE:MSCI) is a McLean, Virginia-based capital market company with a $38.7 billion market capitalization. MSCI Inc (NYSE:MSCI) delivered a 4.22% return since the beginning of the year, while its 12-month returns are up by 25.67%. The stock closed at $486.20 per share on June 14, 2023.
Here is what Baron Focused Growth Fund has to say about MSCI Inc (NYSE:MSCI) in its Q1 2023 investor letter:
“Shares of MSCI, a leading provider of investment decision support tools, increased 20.6% in the first quarter and helped performance by 97 bps. The company continues to generate resilient earnings and cash flow. It is benefiting from improved performance in the global equity markets, which impacts MSCI’s asset-based fee revenue. MSCI owns strong, all weather franchises and remains well positioned to benefit from numerous secular tailwinds in the investment community. We believe its core equity index business continues to be a durable double-digit grower, while its climate change tools should offer another avenue for growth. Climate tools help banks and credit providers understand climate emission rates of borrowers and the footprint of their loan books. Climate today is an $80 million revenue business. MSCI believes in 10 years it could be a $1.5 billion business with extremely high margins. Finally, we believe there should be an opportunity in the private markets, especially the fixed income and private credit spaces. The company continues to generate strong cash flow, which it uses to invest in its business and buy back its stock, a sign the company continues to see value in its equity.”
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Our calculations show that MSCI Inc (NYSE:MSCI) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. MSCI Inc (NYSE:MSCI) was in 50 hedge fund portfolios at the end of the first quarter of 2023, compared to 50 funds in the previous quarter. MSCI Inc (NYSE:MSCI) delivered a -11.30% return in the past 3 months. 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.
