Baron Funds, an asset management firm, published its “Baron Small Cap Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Baron Small Cap Fund (the “Fund”) was down 18.60% (Institutional Shares) in the second quarter. The Fund modestly outperformed the Russell 2000 Growth Index, which was down 19.25% for the period, but lagged the S&P 500 Index, which was down 16.10%. Year-to-date, the Fund is down 31.36%, which trailed the Russell 2000 Growth Index and the S&P 500 Index, which were down 29.45% and 19.96%, respectively. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Baron Small Cap Fund mentioned Shoals Technologies Group, Inc. (NASDAQ:SHLS) and explained its insights for the company. Founded in 1996, Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a Portland, Tennessee-based electrical balance of system or EBOS solutions provider with a $2.9 billion market capitalization. Shoals Technologies Group, Inc. (NASDAQ:SHLS) delivered a 9.30% return since the beginning of the year, while its 12-month returns are down by -10.57%. The stock closed at $26.56 per share on September 09, 2022.
Here is what Baron Small Cap Fund has to say about Shoals Technologies Group, Inc. (NASDAQ:SHLS) in its Q2 2022 investor letter:
“Shoals Technologies Group, Inc., is a leading provider of electrical products and solutions used in constructing large-scale solar projects and electric vehicle charging infrastructure. The stock was down significantly coming into the quarter due to concerns that a U.S. Government Department of Commerce investigation of alleged circumvention of anti-dumping and countervailing duties by solar module manufacturers would cause project delays in constructing new solar plants.
In early June, President Biden announced the lifting of tariffs, and the shares of Shoals and other solar equities rose. We believe that Shoals provides a unique solution to its end markets, selling patented products as complete systems that are needed in all projects, less costly to install, and more reliable. We foresee a long runway of growth for its end market and believe the company can quadruple its EBITDA from last year to 2025 and return to being a darling of growth investors.”
Photo by Science in HD on Unsplash
Our calculations show that Shoals Technologies Group, Inc. (NASDAQ:SHLS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Shoals Technologies Group, Inc. (NASDAQ:SHLS) was in 23 hedge fund portfolios at the end of the second quarter of 2022, compared to 16 funds in the previous quarter. Shoals Technologies Group, Inc. (NASDAQ:SHLS) delivered a 47.23% return in the past 3 months.
In October 2021, we also shared another hedge fund’s views on Shoals Technologies Group, Inc. (NASDAQ:SHLS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
