Baron Funds: “We Expect Bright Horizons (BFAM) to Benefit From Industry Consolidation”

Baron Funds, an asset management firm, published its “Baron Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Growth Fund (the “Fund”) declined 13.33% (Institutional Shares) during the quarter ended March 31, 2022. This is comparable to the Fund’s primary benchmark, the Russell 2000 Growth Index (the “Benchmark”), which declined 12.63%.  Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Growth Fund mentioned Bright Horizons Family Solutions Inc. (NYSE:BFAM) and explained its insights for the company. Founded in 1986, Bright Horizons Family Solutions Inc. (NYSE:BFAM) is a Newton, Massachusetts-based employer-sponsored child care provider with a $4.6 billion market capitalization.   delivered a -38.35% return since the beginning of the year, while its 12-month returns are down by -47.96%. The stock closed at $77.60 per share on June 15, 2022.

Here is what Baron Growth Fund has to say about Bright Horizons Family Solutions Inc. (NYSE:BFAM) in its Q1 2022 investor letter:

“Bright Horizons Family Solutions, Inc. (NYSE:BFAM) is a leading provider of corporate childcare services. Shares rose on reinstated guidance and in-line fourth quarter results, signaling improved visibility into its post-COVID recovery. While labor shortages are a headwind, demand for full-time childcare is strengthening. During the pandemic, the company solidified relationships with clients, who are looking to childcare services as an employee benefit. We expect Bright Horizons to benefit from industry consolidation as the government’s pandemic-related support recedes.”

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Our calculations show that Bright Horizons Family Solutions Inc. (NYSE:BFAM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Bright Horizons Family Solutions Inc. (NYSE:BFAM) was in 21 hedge fund portfolios at the end of the first quarter of 2022, compared to 25 funds in the previous quarter. Bright Horizons Family Solutions Inc. (NYSE:BFAM) delivered a -42.29% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Bright Horizons Family Solutions Inc. (NYSE:BFAM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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