Baron Funds: “We Retain Long-Term Conviction in Expensify (EXFY)”

Baron Funds, an asset management firm, published its “Baron Fintech Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron FinTech Fund (the “Fund”) fell 22.40% (Institutional Shares) compared with a 16.10% decline for the S&P 500 Index (the “Benchmark”) and a 22.80% decline for the FactSet Global FinTech Index (the “Index”). Since inception (December 31, 2019), the Fund has risen 3.81% on an annualized basis compared with an 8.27% gain for the Benchmark and a 5.25% decline for the FactSet Global FinTech Index. 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 Fintech Fund mentioned Expensify, Inc. (NASDAQ:EXFY) and explained its insights for the company. Founded in 2008, Expensify, Inc. (NASDAQ:EXFY) is a Portland, Oregon-based software company with a $1.3 billion market capitalization. Expensify, Inc. (NASDAQ:EXFY) delivered a -18.45% return since the beginning of the year, while its 12-month returns are down by -62.73%. The stock closed at $16.40 per share on September 06, 2022.

Here is what Baron Fintech Fund has to say about Expensify, Inc. (NASDAQ:EXFY) in its Q2 2022 investor letter:

“Shares of Expensify, Inc., an expense management software provider for businesses, contributed to performance. The company reported strong quarterly earnings, expressed confidence in the business outlook, and initiated a share repurchase authorization. High-growth software stocks have recently been out of favor, but we retain long-term conviction in Expensify due to its large addressable market, rapid pace of innovation, and impressive combination of growth and profitability.”

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Our calculations show that Expensify, Inc. (NASDAQ:EXFY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Expensify, Inc. (NASDAQ:EXFY) was in 9 hedge fund portfolios at the end of the second quarter of 2022, compared to 11 funds in the previous quarter. Expensify, Inc. (NASDAQ:EXFY) delivered a -24.32% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Expensify, Inc. (NASDAQ:EXFY) 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.