Baron Funds, an investment management company, released its “Baron FinTech Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund rose 5.29% (Institutional Shares) compared to a 5.78% gain for the FactSet Global FinTech Index (Benchmark) and an 8.74% gain for the S&P 500 index. During the second quarter, the Fund performed well but fell slightly short of the Benchmark. Positive returns were achieved by two-thirds of the holdings. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron FinTech Fund highlighted stocks like Apollo Global Management, Inc. (NYSE:APO) in the second quarter 2023 investor letter. Headquartered in New York, New York, Apollo Global Management, Inc. (NYSE:APO) is a private equity firm. On August 22, 2023, Apollo Global Management, Inc. (NYSE:APO) stock closed at $81.53 per share. One-month return of Apollo Global Management, Inc. (NYSE:APO) was 0.46%, and its shares gained 40.35% of their value over the last 52 weeks. Apollo Global Management, Inc. (NYSE:APO) has a market capitalization of $46.219 billion.
Baron FinTech Fund made the following comment about Apollo Global Management, Inc. (NYSE:APO) in its second quarter 2023 investor letter:
“Tighter lending standards by banks may create more opportunities for private credit providers, such as Apollo Global Management, Inc. (NYSE:APO), Ares Management, Blackstone, and KKR. These lenders operate outside of the banking system to make loans to mostly privately held, middle-market companies. Instead of relying on bank deposits that can be withdrawn daily and are susceptible to runs and repricing, non-bank lenders fund loans using committed capital from investment vehicles, life insurance policies, and annuities that is more stable with a more predictable cost. This enables better asset-liability duration matching and reduces risk for multi-year loans against illiquid assets. Private credit is one of the fastest-growing segments in the lending landscape with close to $1.3 trillion in assets under management, having tripled in the last 10 years and expected to exceed $2 trillion in five years, according to Moody’s Corporation. As banks tighten credit standards and potentially face more onerous regulations, non-bank lenders will likely capture additional market share with attractive risk-adjusted returns. Jamie Dimon noted on JPMorgan’s recent earnings call that higher bank capital requirements is “great news” for private credit lenders who will be “dancing in the streets” as commercial lending moves out of the banking system. We expect Apollo Global will continue to benefit from growth in the private credit market.”
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Apollo Global Management, Inc. (NYSE:APO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Apollo Global Management, Inc. (NYSE:APO) at the end of second quarter which was 65 in the previous quarter.
We discussed Apollo Global Management, Inc. (NYSE:APO) in another article and shared Baron FinTech Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
