Baron Funds: “We Retain Conviction in WIX’s Long-Term Opportunity”

Baron Funds, an asset management firm, published its “Baron Asset Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Against this backdrop, Baron Asset Fund (the “Fund”) gained 5.04% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) gained 2.85%, and the S&P 500 Index gained 11.03%. The Fund’s outperformance was attributable to favorable stock selection and tailwinds from certain style biases, notably its underexposure to the poor performing residual volatility and beta factors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Asset Fund, in its Q4 2021 investor letter, mentioned Wix.com Ltd. (NASDAQ: WIX) and discussed its stance on the firm. Wix.com Ltd. is a Tel Aviv-Yafo, Israel-based web development company with a $7.6 billion market capitalization. WIX delivered a -15.43% return since the beginning of the year, while its 12-month returns are down by -46.39%. The stock closed at $133.45 per share on January 20, 2022.

Here is what Baron Asset Fund has to say about Wix.com Ltd. in its Q4 2021 investor letter:

“Wix.com Ltd. is a leading provider of software that small companies utilize to build and operate their websites. Despite encouraging quarterly results that reflected a recovery in new customer additions following the summer slowdown, the company’s shares fell as investors continued to rotate out of e-commerce and cloud companies. We retain conviction in Wix’s long-term opportunity as it serves a large addressable market (small businesses seeking a web presence) with leading product solutions and an attractive, subscription-based revenue model.”

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Our calculations show that Wix.com Ltd. (NASDAQ: WIX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. WIX was in 25 hedge fund portfolios at the end of the third quarter of 2021, compared to 35 funds in the previous quarter. Wix.com Ltd. (NASDAQ: WIX) delivered a -33.58% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on WIX in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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