Baron Funds: “We believe Floor & Decor Holdings (FND) is One of The Most Exciting Growth Concepts in Retail”

Baron Funds, an asset management company, released its “Baron Asset Fund” investor letter. You can download a copy of the same here. In the second quarter, the fund fell 21.09%. However, the firm believes that the fund is positioned to perform well in the current market concerns of recession and inflation. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Baron Funds discussed stocks like Floor & Decor Holdings, Inc. (NYSE:FND). Headquartered in Atlanta, Georgia, Floor & Decor Holdings, Inc. (NYSE:FND) is an American retailer and flooring distributor. On August 29, 2022, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $83.23 per share. One-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was 3.17% and its shares lost 32.50% of their value over the last 52 weeks. Floor & Decor Holdings, Inc. (NYSE:FND) has a market capitalization of $8.825 billion.

Here is what Baron Funds specifically said about Floor & Decor Holdings, Inc. (NYSE:FND):

“We also established a position in Floor & Decor Holdings, Inc. (NYSE:FND), a specialty retailer of hard-surface flooring (tile, vinyl, wood, stone, and laminate) and accessories. We believe the company is one of the most exciting growth concepts in retail. The company operates 166 warehouse-format stores that average 78,000 square feet, significantly larger than most competitors’ stores.

The large warehouse format allows Floor & Decor to showcase inspirational displays of the industry’s broadest trends, while offering a huge number of in-stock options across flooring types. The company’s significant scale, and its ability to source product directly from a global manufacturer network, has enabled it to become the low-price leader across hard surface flooring.

We believe that the hard-flooring market is currently fragmented and has tailwinds from the ongoing shift away from carpet toward durable, hard surfaces. In addition, given a customer’s desire to see and touch the product, and the cost and logistical challenges of shipping flooring direct to customers, the concept is not susceptible to significant e-commerce disintermediation…” (Click here to read full text)

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Floor & Decor Holdings, Inc. (NYSE:FND) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Floor & Decor Holdings, Inc. (NYSE:FND) was held by 29 hedge fund portfolios at the end of the second quarter compared to 30 in the previous quarter.

We discussed Floor & Decor Holdings, Inc. (NYSE:FND) in another article and shared Argosy Investors’ views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.